An axial EPR signal observed in vacuum annealed LiNbO 3 single crystals doped with 8 mol % Mg and 0.05 mol % Ti has been attributed to Ti 3ϩ on Nb site. The g tensor components (g ʈ ϭ1.760Ϯ0.005 and g Ќ ϭ1.786Ϯ0.005 for Tϭ5 K and g ʈ ϭg Ќ ϭ1.893Ϯ0.005 for Tϭ74 K), resulting in outstandingly low values of the orbital reduction factor ͑from kϭ0.16 to 0.13͒, can be explained by a dynamic pseudo-Jahn-Teller effect. The vibronic coupling of the center is much stronger than that reported for other nd 1 centers with similar trigonally distorted octahedral coordination in LiNbO 3 like the Ti 3ϩ on Li site and trapped Nb 4ϩ polarons on both cation sites. Stronger coupling for ions on or near the Nb site is understood as a result of smaller trigonal splitting of the ground state due to the more central position of the Nb site in the oxygen octahedron. Electron transfer from the observed Ti 3ϩ center to lattice niobiums, resulting in Nb 4ϩ trapped polarons, has been stimulated by illumination in the near UV region. The average energy difference of the involved Ti 4ϩ/3ϩ and Nb 5ϩ/4ϩ donor levels has been estimated to be 70Ϯ23 meV depending also on the distance of compensating Mg 2ϩ ions on nearby Li sites. ͓S0163-1829͑98͒04534-2͔