  Four XMM-Newton X-ray observations of the central region of the Andromeda
Galaxy (M31) have revealed an X-ray source that varies in luminosity over
\~1--3, 10^{38} erg s^{-1} between observations and also displays significant
variability over time-scales of a few hundred seconds. The power density
spectra of lightcurves obtained in the 0.3--10 keV energy band from the three
EPIC instruments on board XMM-Newton are typical of disc-accreting X-ray
binaries at low accretion rates, observed in neutron star binaries only at much
lower luminosities (~10^{36} erg s^{-1}). However X-ray binaries with massive
black hole primaries have exhibited such power spectra for luminosities
>10^{38} erg s^{-1}. We discuss alternative possibilities where RX J0042.3+4115
may be a background AGN or foreground object in the field of view, but conclude
that it is located within M31 and hence use the observed power spectra and
X-ray luminosities to identify the primary as a black hole candidate.
