Deep in the forest.
The Wanderer arrives at the entrance to Fafner's cave, where Alberich is keeping vigil.
The two enemies recognize each other.
 Alberich boasts of his plans to regain the ring and rule the world.
Wotan states that he does not intend to interfere, only to observe.
 He even offers to awaken the dragon so that Alberich can bargain with him.
 Alberich warns the dragon that a hero is coming to kill him, and offers to prevent the fight in exchange for the ring.
Fafner dismisses the threat, declines Alberich's offer, and returns to sleep.
Wotan leaves and Alberich withdraws, muttering threats.
Deep in the forest. The Wanderer arrives at the entrance to Fafner's cave, where Alberich is keeping vigil. The two enemies recognize each other.  Alberich boasts of his plans to regain the ring and rule the world. Wotan states that he does not intend to interfere, only to observe.  He even offers to awaken the dragon so that Alberich can bargain with him.  Alberich warns the dragon that a hero is coming to kill him, and offers to prevent the fight in exchange for the ring. Fafner dismisses the threat, declines Alberich's offer, and returns to sleep. Wotan leaves and Alberich withdraws, muttering threats.
Siegfried (opera)