We present new X-ray data with an improved position for the supersoft
X-ray source RX J0537.7-7034 and propose a candidate for the optical i
dentification. The X-ray source had an ''on'' and an ''off'' state and
was variable on a time scale of months. The proposed optical counterp
art is displaced by only 9 arcsec; it is a blue variable star whith an
amplitude modulation in the optical light curve. The optical spectrum
shows a blue continuum and the He II lambda 4686 emission line.