This paper gives an overview of the layout and the present status of the Free Electron Laser (FEL) project at DESY. A single pass FEL for the vacuum ultraviolet (VUV) spectral range based on self-amplification of spontaneous emission (SASE) is currently under construction. The project will proceed in two phases. In Phase I a 390 MeV superconducting accelerator will be used to drive a FEL operating up to 30 eV. This facility is intended to test various hardware components and to prove the SASE principle for the first time at short wavelengths. After successful completion of the tests the linear accelerator will be upgraded to 1 GeV and the FEL will deliver photons up to 200 eV. An experimental hall will be added and the facility will be available for external users (Phase II). Based on the theory of SASE it is expected that the VUV FEL will produce extremely intense sub-ps pulses which will open up new areas of research.