The New Horizons spacecraft's encounter with the cold classical Kuiper belt object (486958) Arrokoth (formerly 2014 MU69) revealed a contact-binary planetesimal. We investigate how it formed, finding it is the product of a gentle, low-speed merger in the early Solar System.Its two lenticular lobes suggest low-velocity accumulation of numerous smaller planetesimals within a gravitationally collapsing, solid particle cloud. The geometric alignment of the lobes indicates the lobes were a co-orbiting binary that experienced angular momentum loss and subsequent merger, possibly due to dynamical friction and collisions within the cloud or later gas drag. Arrokoth's contact-binary shape was preserved by the benign dynamical and collisional environment of the cold classical Kuiper belt, and so informs the accretion processes that operated in the early Solar System.Main Text: Following its encounter with Pluto in 2015 (1), the New Horizons spacecraft continued further into the Kuiper belt (2). This included a flyby of (486958) Arrokoth (also informally known as Ultima Thule), discovered in a dedicated Hubble Space Telescope campaign (3). Arrokoth's orbit has a semimajor axis a⨀ = 44.2 astronomical units (au), Submitted Manuscript: Confidential 3 eccentricity e = 0.037, and inclination i = 2.54°, making it a member of the cold classical Kuiper belt (CCKB), a reservoir of mainly small bodies on dynamically cold orbits, i.e., those with lowto-moderate e and low i (typically i < 5°), in the outer Solar System (4). CCKB objects have a steeper size-frequency distribution, higher binary fraction, higher albedos, and redder optical colors than the dynamically hot and Neptune-resonant populations of the Kuiper belt, implying a distinct formation mechanism and/or evolutionary history (4). CCKB objects are thought to have formed in place and remained largely undisturbed by the migration of the Solar System's giant planets (4, 5, 6), making them unperturbed remnants of the original protoplanetary disk.The encounter showed Arrokoth is a bi-lobed object, consisting of two discrete, quasiellipsoidal lobes (equivalent spherical diameters 15.9 and 12.9 km, respectively) joined at a narrow contact area or "neck" (Fig. 1) (7,8). We interpret this geometric, co-joined object as a contact binary, i.e., two formerly separate objects that have gravitated towards each other until they touch. The larger lobe (hereafter LL) is more oblate than the smaller lobe (hereafter SL) (8).Arrokoth rotates with a 15.92-hr period at an obliquity of 99° (the angle between its rotation axis and heliocentric orbital plane). The short axes of both lobes are aligned to within a few degrees of each other and with the spin axis of the body as a whole (8). The average visible and nearinfrared colors of both lobes are indistinguishable (9). Near-infrared spectral absorptions on both lobes indicate the presence of methanol ice-a common, relatively thermally stable component (for an ice) of cometary bodies and extrasolar protoplanetary disks (10). The very red optical c...