diff --git a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/DefaultValues.kt b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/DefaultValues.kt
index 18eb1cca519..ce3952ea2eb 100644
--- a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/DefaultValues.kt
+++ b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/DefaultValues.kt
@@ -29,7 +29,7 @@ open class DefaultValues(val defaultValue: String, val possibleValues: List<Stri
     object StringNullDefault : DefaultValues("null")
 
     object LanguageVersions : DefaultValues(
-            "\"" + LanguageVersion.LATEST_STABLE.versionString + "\"",
+            "null",
             LanguageVersion.values().map { "\"${it.description}\"" }
     )
 
diff --git a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinGradlePluginIT.kt b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinGradlePluginIT.kt
index 4083eab903a..49c473424da 100644
--- a/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinGradlePluginIT.kt
+++ b/libraries/tools/kotlin-gradle-plugin-integration-tests/src/test/kotlin/org/jetbrains/kotlin/gradle/KotlinGradlePluginIT.kt
@@ -492,4 +492,53 @@ class KotlinGradleIT: BaseGradleIT() {
             assertSuccessful()
         }
     }
+
+    @Test
+    fun testLanguageVersionApiVersionExplicit() {
+        val project = Project("kotlinProject", "3.3")
+        project.setupWorkingDir()
+
+        val buildGradle = File(project.projectDir, "build.gradle")
+        val buildGradleContentCopy = buildGradle.readText()
+
+        fun updateBuildGradle(langVersion: String, apiVersion: String) {
+            buildGradle.writeText(
+                    """
+                $buildGradleContentCopy
+
+                compileKotlin {
+                    kotlinOptions {
+                        languageVersion = '$langVersion'
+                        apiVersion = '$apiVersion'
+                    }
+                }
+            """.trimIndent())
+        }
+
+        assert(buildGradleContentCopy.indexOf("languageVersion") < 0) { "build.gradle should not contain 'languageVersion'" }
+        assert(buildGradleContentCopy.indexOf("apiVersion") < 0) { "build.gradle should not contain 'apiVersion'" }
+
+        // check the arguments are not passed by default (they are inferred by the compiler)
+        project.build("clean", "compileKotlin") {
+            assertSuccessful()
+            assertNotContains("-language-version")
+            assertNotContains("-api-version")
+            assertNoWarnings()
+        }
+
+        // check the arguments are always passed if specified explicitly
+        updateBuildGradle("1.0", "1.0")
+        project.build("clean", "compileKotlin") {
+            assertSuccessful()
+            assertContains("-language-version 1.0")
+            assertContains("-api-version 1.0")
+        }
+
+        updateBuildGradle("1.1", "1.1")
+        project.build("clean", "compileKotlin") {
+            assertSuccessful()
+            assertContains("-language-version 1.1")
+            assertContains("-api-version 1.1")
+        }
+    }
 }
\ No newline at end of file
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinCommonOptions.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinCommonOptions.kt
index f97089ebebb..146627ddf3d 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinCommonOptions.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinCommonOptions.kt
@@ -7,16 +7,16 @@ interface KotlinCommonOptions {
     /**
      * Allow to use declarations only from the specified version of bundled libraries
      * Possible values: "1.0", "1.1", "1.2 (EXPERIMENTAL)"
-     * Default value: "1.1"
+     * Default value: null
      */
-     var apiVersion: kotlin.String
+     var apiVersion: kotlin.String?
 
     /**
      * Provide source compatibility with specified language version
      * Possible values: "1.0", "1.1", "1.2 (EXPERIMENTAL)"
-     * Default value: "1.1"
+     * Default value: null
      */
-     var languageVersion: kotlin.String
+     var languageVersion: kotlin.String?
 
     /**
      * Generate no warnings
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinJsOptionsBase.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinJsOptionsBase.kt
index d2f14292dec..c7421bfb078 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinJsOptionsBase.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinJsOptionsBase.kt
@@ -4,14 +4,14 @@ package org.jetbrains.kotlin.gradle.dsl
 
 internal abstract class KotlinJsOptionsBase : org.jetbrains.kotlin.gradle.dsl.KotlinJsOptions {
 
-    private var apiVersionField: kotlin.String? = null
-    override var apiVersion: kotlin.String
-        get() = apiVersionField ?: "1.1"
+    private var apiVersionField: kotlin.String?? = null
+    override var apiVersion: kotlin.String?
+        get() = apiVersionField ?: null
         set(value) { apiVersionField = value }
 
-    private var languageVersionField: kotlin.String? = null
-    override var languageVersion: kotlin.String
-        get() = languageVersionField ?: "1.1"
+    private var languageVersionField: kotlin.String?? = null
+    override var languageVersion: kotlin.String?
+        get() = languageVersionField ?: null
         set(value) { languageVersionField = value }
 
     private var suppressWarningsField: kotlin.Boolean? = null
@@ -87,8 +87,8 @@ internal abstract class KotlinJsOptionsBase : org.jetbrains.kotlin.gradle.dsl.Ko
 }
 
 internal fun org.jetbrains.kotlin.cli.common.arguments.K2JSCompilerArguments.fillDefaultValues() {
-    apiVersion = "1.1"
-    languageVersion = "1.1"
+    apiVersion = null
+    languageVersion = null
     suppressWarnings = false
     verbose = false
     friendModulesDisabled = false
diff --git a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinJvmOptionsBase.kt b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinJvmOptionsBase.kt
index 27f69a58b68..a973dca7a9c 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinJvmOptionsBase.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/main/kotlin/org/jetbrains/kotlin/gradle/dsl/KotlinJvmOptionsBase.kt
@@ -4,14 +4,14 @@ package org.jetbrains.kotlin.gradle.dsl
 
 internal abstract class KotlinJvmOptionsBase : org.jetbrains.kotlin.gradle.dsl.KotlinJvmOptions {
 
-    private var apiVersionField: kotlin.String? = null
-    override var apiVersion: kotlin.String
-        get() = apiVersionField ?: "1.1"
+    private var apiVersionField: kotlin.String?? = null
+    override var apiVersion: kotlin.String?
+        get() = apiVersionField ?: null
         set(value) { apiVersionField = value }
 
-    private var languageVersionField: kotlin.String? = null
-    override var languageVersion: kotlin.String
-        get() = languageVersionField ?: "1.1"
+    private var languageVersionField: kotlin.String?? = null
+    override var languageVersion: kotlin.String?
+        get() = languageVersionField ?: null
         set(value) { languageVersionField = value }
 
     private var suppressWarningsField: kotlin.Boolean? = null
@@ -75,8 +75,8 @@ internal abstract class KotlinJvmOptionsBase : org.jetbrains.kotlin.gradle.dsl.K
 }
 
 internal fun org.jetbrains.kotlin.cli.common.arguments.K2JVMCompilerArguments.fillDefaultValues() {
-    apiVersion = "1.1"
-    languageVersion = "1.1"
+    apiVersion = null
+    languageVersion = null
     suppressWarnings = false
     verbose = false
     includeRuntime = false