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.
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