We present new optical spectroscopy and photometry, 2MASS infrared
observations and 24 years of combined AAVSO and AFOEV photometry of the
symbiotic star candidate \ae. The long-term light curve is characterized by
outbursts lasting several years and having a slow decline of $\sim 2 \times
10^{-4}$ mag/day. The whole range of variability of the star in the $V$ band is
about 4 magnitudes. The periodogram of the photometric data reveals strong
signals at $\sim$ 342 and 171 days. The presence of the emission feature at
$\lambda$ 6830 \AA at minimum and the detection of absorption lines of a $\sim$
K5 type star confirm the symbiotic classification and suggest that AE Cir is a
new member of the small group of s-type yellow symbiotic stars. We estimate a
distance of 9.4 kpc. Our spectrum taken at the high state shows a much flatter
spectral energy distribution, the disappearance of the $\lambda$ 6830 \AA
emission feature and the weakness of the He II 4686 emission relative to the
Balmer emission lines. Our observations indicate the presence of emission line
flickering in time scales of minutes in 2001. The peculiar character of \ae is
revealed in the visibility of the secondary star at the high and low state, the
light curve resembling a dwarf nova superoutburst and the relatively short low
states. The data are hard to reconciliate with standard models for symbiotic
star outbursts.Comment: accepted for publication in MNRAS, 7 figure