We present HST /WFPC2 images of the symbiotic star V1016 Cyg which , for the first time , directly explore the inner regions of the nebula to AU scales at optical wavelengths . They also suggest that the [ O iii ] \lambda \lambda 4959,5007 emission takes place in a bipolar outflow . We use these images to determine the position of the two stars and hence a projected binary separation of 84 \pm 2 AU ( assuming a distance of 2 kpc ) and a position angle of 143.5 \pm 10 ^ { \circ } . Furthermore , we combine our images with VLA radio imaging which enables diagnostic tests to be applied and properties of the circumstellar nebula to be determined . Finally we have obtained archive HST /STIS spectra of V1016 Cyg with which we were able to spatially resolve the source at various positions in the nebula . This enabled discovery of the ultraviolet counterpart to the \sim 25 arcsec extended emission found by Bang et al . ( 1992 ) .