Sugarcane leaf rust symptoms were observed on seven month-old plants in March 2012 at Santa Teresa Farm, north coast of Pernambuco, Brazil. Plants were identified as a genotype coded as RBUFRPE0032 developed by the Sugarcane Breeding Program of Universidade Federal Rural de Pernambuco (UFRPE/EECAC). Evaluations under field conditions showed characteristic leaf rust symptoms and high severity. Analysis of symptomatic leaves under the optical microscope at the Plant Pathology Laboratory of UFRPE/EECAC confirmed the presence of fungal urediniospores showing specific characteristics of the fungus. Molecular evaluation by real-time PCR yielded positive results for Puccinia kuenhii. This is the first report of sugarcane leaf rust in Pernambuco. Although the disease has been reported in other Brazilian states, producers and researchers are worried since the behavior of promising commercial varieties and clones from breeding programs directed at the soil and climatic conditions of the state is unknown. The Ministry of Agriculture in Pernambuco was officially informed for notification purposes.