Radar interferometric measurements of ground-surface displacement using ERS data show a change in radar range, corresponding to up to 12 cm of subsidence near Gada 'Ale volcano in northern Afar, Ethiopia, that occurred between June 1993 and May 1996. This is the area of lowest topography within the Danakil Depression(-126 m). Geodetic inverse modeling and geological evidence suggest a volcanic origin of the observed deformation; it was probably caused by a combined process of magma withdrawal form a larger reservoir and normal faulting. There is no evidence of subaerial eruption. This is the only identifiable deformation event during June 1993--October 1997 in the 80 km long Erta 'Ale volcanic range, indicating surprising inactivity elsewhere in the range. ¿ 2000 American Geophysical Union