We report the discovery of a likely outbursting Class I young stellar object, associated with the star-forming region NGC 281-W (distance $sim 2.8$ kpc). The source is currently seen only at infrared wavelengths, appearing in both the Palomar Gattini InfraRed ($1.2~mu$m) and the Near Earth Object Widefield Infrared Survey Explorer ($3.4$ and $4.6~mu$m) photometric time-domain surveys. Recent near-infrared imaging reveals a new, extended scattered light nebula. Recent near-infrared spectroscopy confirms the similarity of PGIR 20dci to FU Ori type sources, based on strong molecular absorption in CO, H$_2$O, and OH, weak absorption in several atomic lines, and a warm wind/outflow as indicated by a P Cygni profile in the HeI 10830 A line. This is a rare case of an FU Ori star with a well-measured long term photometric rise before a sharper outburst, and the second instance of an FU Ori star with a documented two-step brightening in the mid-infrared.
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