We present deep HST/STIS and ground-based photometry of the host galaxy of
the gamma-ray burst GRB 980703 taken 17, 551, 710, and 716 days after the b
urst. We find that the host is a blue, slightly over-luminous galaxy with V
-gal = 23.00 +/-0.10, (V - R)(gal) = 0.43 +/-0.13, and a centre that is app
roximate to0.2 mag bluer than the outer regions of the galaxy. The galaxy h
as a star-formation rate of 8-13 M-circle dot yr(-1), assuming no extinctio
n in the host. We find that the galaxy is best fit by a Sersic R-1/n profil
e with n approximate to 1.0 and a half-light radius of 0." 13 (= 0:72h(100)
(-1) proper kpc.) This corresponds to an exponential disk with a scale radi
us of 0." 22 (= 1.21h(100)(-1) proper kpc). Subtracting a fit with elliptic
al isophotes leaves large residuals, which suggests that the host galaxy ha
s a somewhat irregular morphology, but we are unable to connect the locatio
n of GRB 980703 with any special features in the host. The host galaxy appe
ars to be a typical example of a compact star forming galaxy similar to tho
se found in the Hubble Deep Field North. The R-band light curve of the opti
cal afterglow associated with this gamma-ray burst is consistent with a sin
gle power-law decay having a slope of alpha = 1.37 +/-0.14. Due to the brig
ht underlying host galaxy the late time properties of the light-curve are v
ery poorly constrained. The decay of the optical light curve is consistent
with a contribution from an underlying type Ic supernova like SN1998bw, or
a dust echo, but such contributions cannot be securely established.