We consider a variant of the eXtended Finite Element Method (XFEM) in which a cutoff function is used to localize the singular enrichment surface. The goal of this variant is to obtain numerically an optimal convergence rate while reducing the computational cost of the classical XFEM with a fixed enrichment area. We give a mathematical result of quasi-optimal error estimate. One of the key points of this paper is to prove the optimality of the coupling between the singular and the discontinuous enrichments. Finally, we present some numerical computations validating the theoretical result. These computations are compared with those of the classical XFEM and a non-enriched method. Copyright © 2008 John Wiley & Sons, Ltd.