  We report the discovery of a bright, compact ultraviolet source at a
projected separation of 1.1~kpc from the known active galactic nucleus (AGN) in
Mrk~766 based on Astrosat/UVIT observations. We perform radial profile analysis
and derive the UV flux almost free from the nearby contaminating sources. The
new source is about 2.5 and 5.6 times fainter than the AGN in the far and near
UV bands. The two sources appear as a pair of nuclei in Mrk~766. We investigate
the nature of the new source based on the UV flux ratio, X-ray and optical
emission. The new source is highly unlikely to be another accreting
supermassive black hole in Mrk~766 as it lacks X-ray emission. We find that the
UV/Optical flux of the new source measured at four different bands closely
follow the shape of the template spectrum of starburst galaxies. This strongly
suggests that the new source is a compact star-forming region.
