Final state interactions in the eta-d system

The eta-deuteron scattering amplitude is calculated with a recent K-matrix model of eta-N interactions. The existence of a narrow virtual state in the eta-deuteron system is inferred. This state couples strongly to the eta-d channel but its effect on final state interactions in the pn --> eta-d reaction is shown to be rather weak. Fairly large eta-N scattering lengths are allowed by the experimental data.