  We report the first observation of $K^{\star}(892)^{0}\to\pi K$ in
relativistic heavy ion collisions. The transverse momentum spectrum of
$(K^{\star0}+\bar{K}^{\star0})/2$ from central Au+Au collisions at
$\sqrt{s_{_{NN}}}=130$ GeV is presented. The ratios of the $K^{\star0}$ yield
derived from these data to the yields of negative hadrons, charged kaons, and
$\phi$ mesons have been measured in central and minimum bias collisions and
compared with model predictions and comparable $e^{+}e^{-}$, $pp$, and
$\bar{p}p$ results. The data indicate no dramatic reduction of $K^{\star0}$
production in relativistic heavy ion collisions despite expected losses due to
rescattering effects.
