  Let $\Gamma\subseteq PSL(2,{\bf R})$ be a finite volume Fuchsian group. The
hyperbolic circle problem is the estimation of the number of elements of the
$\Gamma$-orbit of $z$ in a hyperbolic circle around $w$ of radius $R$, where
$z$ and $w$ are given points of the upper half plane and $R$ is a large number.
An estimate with error term $e^{{2\over 3}R}$ is known, and this has not been
improved for any group. Recently Risager and Petridis proved that in the
special case $\Gamma =PSL(2,{\bf Z})$ taking $z=w$ and averaging over $z$ in a
certain way the error term can be improved to $e^{\left({7\over
{12}}+\epsilon\right)R}$. Here we show such an improvement for a general
$\Gamma$, our error term is $e^{\left({5\over 8}+\epsilon\right)R}$ (which is
better that $e^{{2\over 3}R}$ but weaker than the estimate of Risager and
Petridis in the case $\Gamma =PSL(2,{\bf Z})$). Our main tool is our
generalization of the Selberg trace formula proved earlier.
