Context : Aims : We investigate the star-formation ocurring in the region towards IRAS 07527-3446 in the molecular cloud [ MAB97 ] 250.63-3.63 , in the far outer Galaxy . We report the discovery of a new young stellar cluster , and describe its properties and those of its parent molecular cloud . Methods : Near-infrared JHK _ { S } images were obtained with VLT/ISAAC , and millimetre line CO spectra were obtained with the SEST telescope . VLA archive date were also used . Results : The cloud and cluster are located at a distance of 10.3 kpc and a Galactocentric distance of 15.4 kpc , in the far outer Galaxy . Morphologically , IRAS 07527-3446 appears as a young embedded cluster of a few hundred stars seen towards the position of the IRAS source , extending for about 2–4 pc and exhibiting sub-clustering . The cluster contains low and intermediate-mass young reddened stars , a large fraction having cleared the inner regions of their circumstellar discs responsible for ( H - K _ { S } ) colour excess . The observations are compatible with a \leq 5 Myr cluster with variable spatial extinction of between A _ { V } = 5 and A _ { V } = 11 . Decomposition of CO emission in clumps , reveals a clump clearly associated with the cluster position , of mass 3.3 \times 10 ^ { 3 } M _ { \odot } . Estimates of the slopes of the K _ { S } -band luminosity function and of the star-formation efficiency yield values similar to those seen in nearby star-formation sites . These findings reinforce previous results that the distant outer Galaxy continues to be active in the production of new and rich stellar clusters , with the physical conditions required for the formation of rich clusters continuing to be met in the very distant environment of the outer Galactic disc . Conclusions :