The Andromeda galaxy (M31) hosts a central supermassive black hole (SMBH), known as M31 * , which is remarkable for its mass (∼10 8 M ) and extreme radiative quiescence. Over the past decade, the Chandra X-Ray Observatory has pointed to the center of M31 ∼100 times and accumulated a total exposure of ∼900 ks. Based on these observations, we present an X-ray study of a highly variable source that we associate with M31 * based on positional coincidence. We find that M31 * remained in a quiescent state from late 1999 to 2005, exhibiting an average 0.5-8 keV luminosity 10 36 erg s −1 , or only ∼10 −10 of its Eddington luminosity. We report the discovery of an outburst that occurred on 2006 January 6 during which M31 * radiated at ∼4.3 × 10 37 erg s −1 . After the outburst, M31* entered a more active state that apparently lasts to the present, which is characterized by frequent flux variability around an average luminosity of ∼4.8 × 10 36 erg s −1 . These flux variations are similar to the X-ray flares found in the SMBH of our Galaxy (Sgr A * ), making M31 * the second SMBH known to exhibit recurrent flares. Future coordinated X-ray/radio observations will provide useful constraints on the physical origin of the flaring emission and help rule out a possible stellar origin of the X-ray source.