We have observed the Galactic supernova remnant G16.7+0.1 for 13 ks using the EPIC cameras aboard the XMM-Newton X-ray Observatory, producing the first detection of the SNR outside of the radio band. G16.7+0.1 is one of the faintest radio synchrotron nebulae yet detected, although the core-to-shell flux ratio at 6 cm is typical of composite SNRs. The distance to the object is unknown. Our image is seriously contaminated by single-reflection arcs from the X-ray binary GX17+2, which lies just outside the field of view. Nonetheless, the remnants synchrotron core is clearly detected. We report on the spectrum and intensity of the core emission as well as on our search for emission from the thermal shell, and describe the constraints these observations place on the SNRs distance, age, and central pulsar properties.