We have detected a transient X-ray source in the M31 bulge through a continuing monitoring campaign with the Chandra ACIS-I camera. The source was detected at R.A.=00:42:33.428 +/- 0.11'', Dec.=+41:17:03.37 +/- 0.11'' in only a single observation taken 2004 May 23. Fortuitous optical HST/ACS imaging of the transient location prior to the X-ray outburst, along with follow-up HST/ACS imaging during and after the outburst, reveals no transient optical source brighter than B (equivalent) = 25.5. The location of the source and its X-ray properties suggest it is a low mass X-ray binary (LMXB). Assuming the transient is similar to many Galactic X-ray novae, the X-ray luminosity of (3.9 +/- 0.5) X 10$^{37}$ erg s$^{-1}$ and the upper-limit on the optical luminosity provide a prediction of <1.6 days for the orbital period of the binary system.

15 pages, 3 figures, accepted for publication in ApJ