A tailward moving plasmoid (flux rope) was observed by the GEOTAIL spacecraft at [-22, 5, -3 R-E GSE] after a period with strong geomagnetic activity on November 27, 1995. The structure exhibited classic plasmoid like signatures; bipolar B-Z, a strong core field and tailward streaming ions. Measurements from the solar wind and the ground show that the GEOTAIL-observations were correlated with a change in the IMF and a substorm onset. Together, these observations suggest that the flux rope was launched as a result of magnetic reconnection during substorm onset, and that the reconnection site was located earthward of -22 R-E. TO our knowledge, observations of similar substorm associated flux rope formation and tailward streaming ions at such distances have not been reported earlier.