  The discovery of X-ray, optical and radio afterglows of gamma-ray bursts
(GRBs) and the measurements of the distances to some of them have established
that these events come from Gpc distances and are the most powerful photon
emitters known in the Universe, with peak luminosities up to 10^52 erg/s. We
here report the discovery of an optical transient, in the BeppoSAX Wide Field
Camera error box of GRB980425, which occurred within about a day of the
gamma-ray burst. Its optical light curve, spectrum and location in a spiral arm
of the galaxy ESO 184-G82, at a redshift z = 0.0085, show that the transient is
a very luminous type Ic supernova, SN1998bw. The peculiar nature of SN1998bw is
emphasized by its extraordinary radio properties which require that the radio
emitter expand at relativistical speed. Since SN1998bw is very different from
all previously observed afterglows of GRBs, our discovery raises the
possibility that very different mechanisms may give rise to GRBs, which differ
little in their gamma-ray properties.
