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Context. The Large Magellanic Cloud (LMC) is an ideal target for the study of an unbiased and complete sample of supernova remnants (SNRs). We started an X-ray survey of the LMC with XMM-Newton, which, in combination with observations at other wavelengths, will allow us to discover and study remnants that are either even fainter or more evolved (or both) than previously known. Aims. We present new X-ray and radio data of the LMC SNR candidate DEM L205, obtained by XMM-Newton and ATCA, along with archival optical and infrared observations. Methods. We use data at various wavelengths to study this object and its complex neighbourhood, in particular in the context of the star formation activity, past and present, around the source. We analyse the X-ray spectrum to derive some remnant's properties, such as age and explosion energy. Results. Supernova remnant features are detected at all observed wavelengths : soft and extended X-ray emission is observed, arising from a thermal plasma with a temperature kT between 0.2 keV and 0.3 keV. Optical line emission is characterised by an enhanced [S ii]-to-Hα ratio and a shell-like morphology, correlating with the X-ray emission. The source is not or only tentatively detected at near-infrared wavelengths (shorter than 10 μm), but there is a detection of arc-like emission at mid and far-infrared wavelengths (24 and 70 μm) that can be unambiguously associated with the remnant. We suggest that thermal emission from dust heated by stellar radiation and shock waves is the main contributor to the infrared emission. Finally, an extended and faint non-thermal radio emission correlates with the remnant at other wavelengths and we find a radio spectral index between -0.7 and -0.9, within the range for SNRs. The size of the remnant is ∼79 X64 pc and we estimate a dynamical age of about 35 000 years. Conclusions. We definitely confirm DEM L205 as a new SNR. This object ranks amongst the largest remnants known in the LMC. The numerous massive stars and the recent outburst in star formation around the source strongly suggest that a core-collapse supernova is the progenitor of this remnant. [ABSTRACT FROM AUTHOR]