We analyse the photometric, chemical, star formation history and structural properties of the brightest globular cluster (GC) in M81, referred as GC1 in this work, with the intention of establishing its nature and origin. We find that it is a metal-rich ([Fe/H]=-0.60+/-0.10), alpha-enhanced ([Alpha/Fe]=0.20+/0.05), core-collapsed (core radius r_c=1.2 pc, tidal radius r_t = 76r_c), old (>13 Gyr) cluster. It has an ultraviolet excess equivalent of ~2500 blue horizontal branch stars. It is detected in X-rays indicative of the presence of low-mass binaries. With a mass of 10 million solar masses, the cluster is comparable in mass to M31-G1 and is four times more massive than Omega Cen. The values of r_c, absolute magnitude and mean surface brightness of GC1 suggest that it could be, like massive GCs in other giant galaxies, the left-over nucleus of a dissolved dwarf galaxy.