We present optical and infrared observations of the soft X-ray transient
(SXT) XTE J2012+381 and identify the optical counterpart with a faint red star
heavily blended with a brighter foreground star. The fainter star is coincident
with the radio counterpart and appears to show weak H alpha emission and to
have faded between observations. The RXTE/ASM lightcurve of XTE J2012+381 is
unusual for an SXT in that after an extended linear decay, it settled into a
plateau state for about 40 days before undergoing a weak mini-outburst. We
discuss the nature of the object and suggest similarities to long orbital
period SXTs.Comment: 5 pages, 7 postscript figures included, uses mn.sty. Accepted for
publication in MNRA