We report the detection of CO(1-0) emission during a systematic search at and around the position of the QSO 3C 196 at the redshift of the 21-cm absorption system. The strongest detected CO(1-0) emission was 1’south of the line of sight to 3C 196 and represents approximately 1011M⊙ of molecular gas. We also detect weaker CO emission at the QSO position, but we are unable to distinguish between the possibilities that this emission arises from the source which is ~ 1’ S of the 3C 196 or that the CO emission arises from two or more emission regions spread over ~200 kpc.