  A set of CCD images have been obtained during the decline of the X-ray
transient SAX J1808.4-3658 during April-June 1998. The optical counterpart has
been confirmed by several pieces of evidence. The optical flux shows a
modulation on several nights which is consistent with the established X-ray
binary orbit period of 2 hours. This optical variability is roughly in
antiphase with the weak X-ray modulation. The source mean magnitude of V=16.7
on April 18 declined rapidly after April 22. From May 2 onwards the magnitude
was more constant at around V=18.45 but by June 27 was below our sensitivity
limit. The optical decline precedes the rapid second phase of the X-ray
decrease by 3 +/- 1 days. The source has been identified on a 1974 UK Schmidt
plate at an estimated magnitude of ~20. The nature of the optical companion is
discussed.
