diff --git a/compiler/testData/builtin-classes.txt b/compiler/testData/builtin-classes.txt
index f6a02337139..0a183f4a9b0 100644
--- a/compiler/testData/builtin-classes.txt
+++ b/compiler/testData/builtin-classes.txt
@@ -464,14 +464,10 @@ public abstract class Enum</*0*/ E : kotlin.Enum<E>> : kotlin.Comparable<E> {
     }
 }
 
-@kotlin.annotation.Target(allowedTargets = {AnnotationTarget.TYPE}) @kotlin.annotation.MustBeDocumented() @kotlin.Deprecated(message = "Use @ExtensionFunctionType instead.", replaceWith = kotlin.ReplaceWith(expression = "@ExtensionFunctionType", imports = {})) public final annotation class Extension : kotlin.Annotation {
+@kotlin.annotation.Target(allowedTargets = {AnnotationTarget.TYPE}) @kotlin.annotation.MustBeDocumented() public final annotation class Extension : kotlin.Annotation {
     /*primary*/ public constructor Extension()
 }
 
-@kotlin.annotation.Target(allowedTargets = {AnnotationTarget.TYPE}) @kotlin.annotation.MustBeDocumented() public final annotation class ExtensionFunctionType : kotlin.Annotation {
-    /*primary*/ public constructor ExtensionFunctionType()
-}
-
 public final class Float : kotlin.Number, kotlin.Comparable<kotlin.Float> {
     /*primary*/ private constructor Float()
     public final operator fun compareTo(/*0*/ other: kotlin.Byte): kotlin.Int
diff --git a/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.kt b/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.kt
index bc7fb23ce4d..2d89ffd77b2 100644
--- a/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.kt
+++ b/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.kt
@@ -6,8 +6,8 @@ fun foo(a: (String) -> Unit) {
 
 interface A : (String) -> Unit {}
 
-fun foo(a: @ExtensionFunctionType A) {
-    // @ExtensionFunctionType annotation on an unrelated type shouldn't have any effect on this diagnostic.
-    // Only kotlin.Function{n} type annotated with @ExtensionFunctionType should
+fun foo(a: @Extension A) {
+    // @Extension annotation on an unrelated type shouldn't have any effect on this diagnostic.
+    // Only kotlin.Function{n} type annotated with @Extension should
     "".<!INVOKE_EXTENSION_ON_NOT_EXTENSION_FUNCTION!>a<!>()
-}
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.txt b/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.txt
index 9ea07923568..7dc7b460d80 100644
--- a/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.txt
+++ b/compiler/testData/diagnostics/tests/FreeFunctionCalledAsExtension.txt
@@ -1,7 +1,7 @@
 package
 
 public fun foo(/*0*/ a: (kotlin.String) -> kotlin.Unit): kotlin.Unit
-public fun foo(/*0*/ a: @kotlin.ExtensionFunctionType() A): kotlin.Unit
+public fun foo(/*0*/ a: @kotlin.Extension() A): kotlin.Unit
 
 public interface A : (kotlin.String) -> kotlin.Unit {
     public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
diff --git a/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.kt b/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.kt
index 1eb372ce86c..563a3e5e867 100644
--- a/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.kt
+++ b/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.kt
@@ -5,7 +5,7 @@ annotation class ann
 
 interface Some {
     fun f1(): String.() -> Int
-    fun f2(): @ExtensionFunctionType String.() -> Int
+    fun f2(): @Extension String.() -> Int
     fun f3(): @ann String.() -> Int
-    fun f4(): @ExtensionFunctionType @ann String.() -> Int
+    fun f4(): @Extension @ann String.() -> Int
 }
diff --git a/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.txt b/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.txt
index 1dfc3b0743c..ce3b233ff88 100644
--- a/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.txt
+++ b/compiler/testData/diagnostics/tests/annotations/extensionFunctionType.txt
@@ -3,9 +3,9 @@ package
 public interface Some {
     public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
     public abstract fun f1(): kotlin.String.() -> kotlin.Int
-    public abstract fun f2(): @kotlin.ExtensionFunctionType() kotlin.String.() -> kotlin.Int
+    public abstract fun f2(): @kotlin.Extension() kotlin.String.() -> kotlin.Int
     public abstract fun f3(): @ann() kotlin.String.() -> kotlin.Int
-    public abstract fun f4(): @kotlin.ExtensionFunctionType() @ann() kotlin.String.() -> kotlin.Int
+    public abstract fun f4(): @kotlin.Extension() @ann() kotlin.String.() -> kotlin.Int
     public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
 }
diff --git a/compiler/testData/diagnostics/tests/inline/binaryExpressions/arrayAccess.kt b/compiler/testData/diagnostics/tests/inline/binaryExpressions/arrayAccess.kt
index 19a60b6e122..4a13385ee75 100644
--- a/compiler/testData/diagnostics/tests/inline/binaryExpressions/arrayAccess.kt
+++ b/compiler/testData/diagnostics/tests/inline/binaryExpressions/arrayAccess.kt
@@ -12,7 +12,7 @@ operator fun <T, U, V> Function2<T, U, V>.get(index : Int) {
 
 }
 
-operator fun <T, U, V, W> @ExtensionFunctionType Function3<T, U, V, W>.get(index : Int) {
+operator fun <T, U, V, W> @Extension Function3<T, U, V, W>.get(index : Int) {
 
 }
 
diff --git a/compiler/testData/diagnostics/tests/inline/binaryExpressions/assignment.kt b/compiler/testData/diagnostics/tests/inline/binaryExpressions/assignment.kt
index da2dcab7eab..438b43cc618 100644
--- a/compiler/testData/diagnostics/tests/inline/binaryExpressions/assignment.kt
+++ b/compiler/testData/diagnostics/tests/inline/binaryExpressions/assignment.kt
@@ -12,14 +12,14 @@ inline operator fun <T, U> Function1<T, U>.plusAssign(p: Function1<T, U>) {
     <!USAGE_IS_NOT_INLINABLE!>p<!> -= <!USAGE_IS_NOT_INLINABLE!>this<!>
 }
 
-operator fun <T, U, V> @ExtensionFunctionType Function2<T, U, V>.minusAssign(ext : @ExtensionFunctionType Function2<T, U, V>) {}
+operator fun <T, U, V> @Extension Function2<T, U, V>.minusAssign(ext : @Extension Function2<T, U, V>) {}
 
-inline <!INAPPLICABLE_OPERATOR_MODIFIER!>operator<!> fun <T, U, V> @ExtensionFunctionType Function2<T, U, V>.modAssign(ext : @ExtensionFunctionType Function2<T, U, V>) = {
+inline <!INAPPLICABLE_OPERATOR_MODIFIER!>operator<!> fun <T, U, V> @Extension Function2<T, U, V>.modAssign(ext : @Extension Function2<T, U, V>) = {
     this += ext
     ext += this
 }
 
-inline operator fun <T, U, V> @ExtensionFunctionType Function2<T, U, V>.plusAssign(ext : @ExtensionFunctionType Function2<T, U, V>) {
+inline operator fun <T, U, V> @Extension Function2<T, U, V>.plusAssign(ext : @Extension Function2<T, U, V>) {
     <!USAGE_IS_NOT_INLINABLE!>this<!> -= <!USAGE_IS_NOT_INLINABLE!>ext<!>
     <!USAGE_IS_NOT_INLINABLE!>ext<!> -= <!USAGE_IS_NOT_INLINABLE!>this<!>
 }
diff --git a/compiler/testData/diagnostics/tests/inline/binaryExpressions/comparison.kt b/compiler/testData/diagnostics/tests/inline/binaryExpressions/comparison.kt
index 6166c6656d8..1233c32f4f2 100644
--- a/compiler/testData/diagnostics/tests/inline/binaryExpressions/comparison.kt
+++ b/compiler/testData/diagnostics/tests/inline/binaryExpressions/comparison.kt
@@ -11,7 +11,7 @@ inline fun <T, U, V> inlineFunWithInvoke(s: (p: T) -> U) {
 
 //noinline
 operator fun <T, U, V> Function2<T, U, V>.compareTo(index : Function2<T, U, V>) = 1
-operator fun <T, U, V, W> @ExtensionFunctionType Function3<T, U, V, W>.compareTo(index : @ExtensionFunctionType Function3<T, U, V, W>) = 1
+operator fun <T, U, V, W> @Extension Function3<T, U, V, W>.compareTo(index : @Extension Function3<T, U, V, W>) = 1
 
 inline fun <T, U, V, W> inlineFunWithInvoke(s: (p: T, l: U) -> V, ext: T.(p: U, l: V) -> W) {
     <!USAGE_IS_NOT_INLINABLE!>s<!> < <!USAGE_IS_NOT_INLINABLE!>s<!>
diff --git a/compiler/testData/diagnostics/tests/inline/binaryExpressions/componentAccess.kt b/compiler/testData/diagnostics/tests/inline/binaryExpressions/componentAccess.kt
index 52baa63c0d5..0403652b44e 100644
--- a/compiler/testData/diagnostics/tests/inline/binaryExpressions/componentAccess.kt
+++ b/compiler/testData/diagnostics/tests/inline/binaryExpressions/componentAccess.kt
@@ -9,8 +9,8 @@ inline fun <T, U, V> inlineFunWithInvoke(s: (p: T) -> U) {
 operator fun <T, U, V> Function2<T, U, V>.component1() = 1
 operator fun <T, U, V> Function2<T, U, V>.component2() = 2
 
-operator fun <T, U, V, W> @ExtensionFunctionType Function3<T, U, V, W>.component1() = 1
-operator fun <T, U, V, W> @ExtensionFunctionType Function3<T, U, V, W>.component2() = 2
+operator fun <T, U, V, W> @Extension Function3<T, U, V, W>.component1() = 1
+operator fun <T, U, V, W> @Extension Function3<T, U, V, W>.component2() = 2
 
 inline fun <T, U, V, W> inlineFunWithInvoke(s: (p: T, l: U) -> V, ext: T.(p: U, l: V) -> W) {
     val (d1, e1) = <!USAGE_IS_NOT_INLINABLE, USAGE_IS_NOT_INLINABLE!>s<!>
diff --git a/compiler/testData/diagnostics/tests/inline/binaryExpressions/contains.kt b/compiler/testData/diagnostics/tests/inline/binaryExpressions/contains.kt
index 6f77e98b20a..0cde2e63426 100644
--- a/compiler/testData/diagnostics/tests/inline/binaryExpressions/contains.kt
+++ b/compiler/testData/diagnostics/tests/inline/binaryExpressions/contains.kt
@@ -13,7 +13,7 @@ inline fun <T, U, V> inlineFunWithInvoke(s: (p: T) -> U) {
 
 operator fun <T, U, V> Function2<T, U, V>.contains(p: Function2<T, U, V>): Boolean = false
 
-operator fun <T, U, V, W> @ExtensionFunctionType Function3<T, U, V, W>.contains(ext: @ExtensionFunctionType Function3<T, U, V, W>): Boolean = false
+operator fun <T, U, V, W> @Extension Function3<T, U, V, W>.contains(ext: @Extension Function3<T, U, V, W>): Boolean = false
 
 inline fun <T, U, V> inlineFunWithInvoke(s: (p: T, l: U) -> U, ext: T.(p: U, l: U) -> V) {
     <!USAGE_IS_NOT_INLINABLE!>s<!> in <!USAGE_IS_NOT_INLINABLE!>s<!>
diff --git a/compiler/testData/diagnostics/tests/inline/binaryExpressions/mathOperations.kt b/compiler/testData/diagnostics/tests/inline/binaryExpressions/mathOperations.kt
index 9a1fd2023c8..105bbd25dbb 100644
--- a/compiler/testData/diagnostics/tests/inline/binaryExpressions/mathOperations.kt
+++ b/compiler/testData/diagnostics/tests/inline/binaryExpressions/mathOperations.kt
@@ -3,7 +3,7 @@ operator fun <T, U> Function1<T, U>.minus(p: Function1<T, U>) {
 
 }
 
-operator fun <T, U, V> @ExtensionFunctionType Function2<T, U, V>.minus(p: T.(p: U) -> V) {
+operator fun <T, U, V> @Extension Function2<T, U, V>.minus(p: T.(p: U) -> V) {
 
 }
 
@@ -11,7 +11,7 @@ inline operator fun <T, U> Function1<T, U>.plus(p: Function1<T, U>) {
     <!USAGE_IS_NOT_INLINABLE!>this<!> - <!USAGE_IS_NOT_INLINABLE!>p<!>
 }
 
-inline operator fun <T, U, V> @ExtensionFunctionType Function2<T, U, V>.plus(p: T.(p: U) -> V) {
+inline operator fun <T, U, V> @Extension Function2<T, U, V>.plus(p: T.(p: U) -> V) {
     <!USAGE_IS_NOT_INLINABLE!>this<!> - <!USAGE_IS_NOT_INLINABLE!>p<!>
 }
 
@@ -29,6 +29,6 @@ inline fun <T, U> Function1<T, U>.submit() {
     this + this
 }
 
-inline fun <T, U, V> @ExtensionFunctionType Function2<T, U, V>.submit() {
+inline fun <T, U, V> @Extension Function2<T, U, V>.submit() {
     this + this
 }
diff --git a/compiler/testData/diagnostics/tests/inline/binaryExpressions/rangeTo.kt b/compiler/testData/diagnostics/tests/inline/binaryExpressions/rangeTo.kt
index 508750fb971..e2042693f2f 100644
--- a/compiler/testData/diagnostics/tests/inline/binaryExpressions/rangeTo.kt
+++ b/compiler/testData/diagnostics/tests/inline/binaryExpressions/rangeTo.kt
@@ -16,7 +16,7 @@ operator fun <T, U, V> Function2<T, U, V>.rangeTo(p: Function2<T, U, V>): Closed
     return 1..2
 }
 
-operator fun <T, U, V, W> @ExtensionFunctionType Function3<T, U, V, W>.rangeTo(ext: @ExtensionFunctionType Function3<T, U, V, W>): ClosedRange<Int> {
+operator fun <T, U, V, W> @Extension Function3<T, U, V, W>.rangeTo(ext: @Extension Function3<T, U, V, W>): ClosedRange<Int> {
     return 1..2
 }
 
diff --git a/compiler/testData/diagnostics/tests/inline/unaryExpressions/mathOperation.kt b/compiler/testData/diagnostics/tests/inline/unaryExpressions/mathOperation.kt
index 66d725de038..c53f05d9a4d 100644
--- a/compiler/testData/diagnostics/tests/inline/unaryExpressions/mathOperation.kt
+++ b/compiler/testData/diagnostics/tests/inline/unaryExpressions/mathOperation.kt
@@ -5,10 +5,10 @@ operator fun <T, V> Function1<T, V>.unaryMinus() = this
 inline operator fun <T, V> Function1<T, V>.inc() = <!USAGE_IS_NOT_INLINABLE!>this<!>
 operator fun <T, V> Function1<T, V>.dec() = this
 
-inline operator fun <T, V> @ExtensionFunctionType Function2<T, T, V>.unaryPlus(){}
-operator fun <T, V> @ExtensionFunctionType Function2<T, T, V>.unaryMinus(){}
-inline operator fun <T, V> @ExtensionFunctionType Function2<T, T, V>.inc() = <!USAGE_IS_NOT_INLINABLE!>this<!>
-operator fun <T, V> @ExtensionFunctionType Function2<T, T, V>.dec() = this
+inline operator fun <T, V> @Extension Function2<T, T, V>.unaryPlus(){}
+operator fun <T, V> @Extension Function2<T, T, V>.unaryMinus(){}
+inline operator fun <T, V> @Extension Function2<T, T, V>.inc() = <!USAGE_IS_NOT_INLINABLE!>this<!>
+operator fun <T, V> @Extension Function2<T, T, V>.dec() = this
 
 inline fun <T, V> inlineFunWithInvoke(s: (p: T) -> V, ext: T.(p: T) -> V) {
     +s
diff --git a/compiler/testData/diagnostics/tests/inline/unaryExpressions/notOperation.kt b/compiler/testData/diagnostics/tests/inline/unaryExpressions/notOperation.kt
index 143083b00d7..75a7c46794b 100644
--- a/compiler/testData/diagnostics/tests/inline/unaryExpressions/notOperation.kt
+++ b/compiler/testData/diagnostics/tests/inline/unaryExpressions/notOperation.kt
@@ -11,7 +11,7 @@ operator fun <T, U, V> Function2<T, U, V>.not() : Boolean {
     return !this
 }
 
-operator fun <T, U, V, W> @ExtensionFunctionType Function3<T, U, V, W>.not() : Boolean {
+operator fun <T, U, V, W> @Extension Function3<T, U, V, W>.not() : Boolean {
     return !this
 }
 
diff --git a/compiler/testData/renderer/FunctionTypes.kt b/compiler/testData/renderer/FunctionTypes.kt
index 5e88d258255..a5c456ee35d 100644
--- a/compiler/testData/renderer/FunctionTypes.kt
+++ b/compiler/testData/renderer/FunctionTypes.kt
@@ -5,18 +5,18 @@ var v4: Function1<Int, String>
 var v4: (() -> Int, (String) -> Unit) -> String
 var v5: Int.() -> Int
 var v6 : Int.(String, Int) -> Unit
-var v7 : @ExtensionFunctionType Function2<Int, String, Boolean>
+var v7 : @Extension Function2<Int, String, Boolean>
 
 class F: Function0<Unit>
 var v8: F
 
-class EF: @ExtensionFunctionType Function1<String, Unit>
+class EF: @Extension Function1<String, Unit>
 var v9: EF
 
 class GF<T>: Function0<T>
 var v10: GF<Any>
 
-class GEF<A, B>: @ExtensionFunctionType Function1<A, B>
+class GEF<A, B>: @Extension Function1<A, B>
 var v11: GEF<Any, Any>
 
 var v12: (() -> Unit).() -> Unit
diff --git a/compiler/testData/resolvedCalls/functionTypes/invokeForExtensionFunctionType.txt b/compiler/testData/resolvedCalls/functionTypes/invokeForExtensionFunctionType.txt
index 6778d757371..a95394fb538 100644
--- a/compiler/testData/resolvedCalls/functionTypes/invokeForExtensionFunctionType.txt
+++ b/compiler/testData/resolvedCalls/functionTypes/invokeForExtensionFunctionType.txt
@@ -9,5 +9,5 @@ Resolved call:
 Resulting descriptor: operator fun Int.invoke(): Unit defined in kotlin.Function1
 
 Explicit receiver kind = BOTH_RECEIVERS
-Dispatch receiver = f {[@kotlin.ExtensionFunctionType] Function1<Int, Unit>}
+Dispatch receiver = f {[@kotlin.Extension] Function1<Int, Unit>}
 Extension receiver = 1 {Int}
diff --git a/compiler/testData/resolvedCalls/functionTypes/valOfExtensionFunctionTypeInvoke.txt b/compiler/testData/resolvedCalls/functionTypes/valOfExtensionFunctionTypeInvoke.txt
index e42f0beaec4..37cb35e51f2 100644
--- a/compiler/testData/resolvedCalls/functionTypes/valOfExtensionFunctionTypeInvoke.txt
+++ b/compiler/testData/resolvedCalls/functionTypes/valOfExtensionFunctionTypeInvoke.txt
@@ -13,5 +13,5 @@ Resolved call:
 Resulting descriptor: operator fun Int.invoke(): Unit defined in kotlin.Function1
 
 Explicit receiver kind = BOTH_RECEIVERS
-Dispatch receiver = foo {[@kotlin.ExtensionFunctionType] Function1<Int, Unit>}
+Dispatch receiver = foo {[@kotlin.Extension] Function1<Int, Unit>}
 Extension receiver = 1 {Int}
diff --git a/compiler/testData/resolvedCalls/invoke/implicitReceiverForInvoke.txt b/compiler/testData/resolvedCalls/invoke/implicitReceiverForInvoke.txt
index 33d2bf46d5e..93fe2fb97fe 100644
--- a/compiler/testData/resolvedCalls/invoke/implicitReceiverForInvoke.txt
+++ b/compiler/testData/resolvedCalls/invoke/implicitReceiverForInvoke.txt
@@ -11,5 +11,5 @@ Resolved call:
 Resulting descriptor: operator fun Int.invoke(): Unit defined in kotlin.Function1
 
 Explicit receiver kind = DISPATCH_RECEIVER
-Dispatch receiver = f {[@kotlin.ExtensionFunctionType] Function1<Int, Unit>}
+Dispatch receiver = f {[@kotlin.Extension] Function1<Int, Unit>}
 Extension receiver = IntExt{fun Int.<anonymous>(): Unit defined in bar}
diff --git a/core/builtins/src/kotlin/Annotations.kt b/core/builtins/src/kotlin/Annotations.kt
index 9d913f6e976..468b5bed1de 100644
--- a/core/builtins/src/kotlin/Annotations.kt
+++ b/core/builtins/src/kotlin/Annotations.kt
@@ -69,11 +69,6 @@ public enum class DeprecationLevel {
  */
 @Target(TYPE)
 @MustBeDocumented
-public annotation class ExtensionFunctionType
-
-@Target(TYPE)
-@MustBeDocumented
-@Deprecated("Use @ExtensionFunctionType instead.", replaceWith = ReplaceWith("@ExtensionFunctionType"))
 public annotation class Extension
 
 /**
diff --git a/core/descriptors/src/org/jetbrains/kotlin/builtins/KotlinBuiltIns.java b/core/descriptors/src/org/jetbrains/kotlin/builtins/KotlinBuiltIns.java
index 62fd9e0f6f1..5e62d092e47 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/builtins/KotlinBuiltIns.java
+++ b/core/descriptors/src/org/jetbrains/kotlin/builtins/KotlinBuiltIns.java
@@ -139,7 +139,7 @@ public abstract class KotlinBuiltIns {
         public final FqName throwable = fqName("Throwable");
 
         public final FqName deprecated = fqName("Deprecated");
-        public final FqName extensionFunctionType = fqName("ExtensionFunctionType");
+        public final FqName extension = fqName("Extension");
         public final FqName target = annotationName("Target");
         public final FqName annotationTarget = annotationName("AnnotationTarget");
         public final FqName annotationRetention = annotationName("AnnotationRetention");
@@ -156,9 +156,6 @@ public abstract class KotlinBuiltIns {
         public final FqNameUnsafe kCallable = reflect("KCallable");
         public final ClassId kProperty = ClassId.topLevel(reflect("KProperty").toSafe());
 
-        // TODO: remove in 1.0
-        public final FqName deprecatedExtensionAnnotation = fqName("Extension");
-
         public final Map<FqNameUnsafe, PrimitiveType> fqNameToPrimitiveType;
         public final Map<FqNameUnsafe, PrimitiveType> arrayClassFqNameToPrimitiveType;
         {
@@ -699,13 +696,12 @@ public abstract class KotlinBuiltIns {
 
     @NotNull
     public AnnotationDescriptor createExtensionAnnotation() {
-        return new AnnotationDescriptorImpl(getBuiltInClassByName(FQ_NAMES.extensionFunctionType.shortName()).getDefaultType(),
+        return new AnnotationDescriptorImpl(getBuiltInClassByName(FQ_NAMES.extension.shortName()).getDefaultType(),
                                             Collections.<ValueParameterDescriptor, ConstantValue<?>>emptyMap(), SourceElement.NO_SOURCE);
     }
 
     private static boolean isTypeAnnotatedWithExtension(@NotNull KotlinType type) {
-        return type.getAnnotations().findAnnotation(FQ_NAMES.extensionFunctionType) != null ||
-               type.getAnnotations().findAnnotation(FQ_NAMES.deprecatedExtensionAnnotation) != null;
+        return type.getAnnotations().findAnnotation(FQ_NAMES.extension) != null;
     }
 
     @NotNull
@@ -719,14 +715,14 @@ public abstract class KotlinBuiltIns {
         int size = parameterTypes.size();
         ClassDescriptor classDescriptor = receiverType == null ? getFunction(size) : getExtensionFunction(size);
 
-        Annotations typeAnnotations = receiverType == null ? annotations : addExtensionFunctionTypeAnnotation(annotations);
+        Annotations typeAnnotations = receiverType == null ? annotations : addExtensionAnnotation(annotations);
 
         return KotlinTypeImpl.create(typeAnnotations, classDescriptor, false, arguments);
     }
 
     @NotNull
-    private Annotations addExtensionFunctionTypeAnnotation(@NotNull Annotations annotations) {
-        if (annotations.findAnnotation(FQ_NAMES.extensionFunctionType) != null) return annotations;
+    private Annotations addExtensionAnnotation(@NotNull Annotations annotations) {
+        if (annotations.findAnnotation(FQ_NAMES.extension) != null) return annotations;
 
         // TODO: preserve laziness of given annotations
         return new AnnotationsImpl(plus(annotations, listOf(createExtensionAnnotation())));
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/decompiler/stubBuilder/TypeClsStubBuilder.kt b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/decompiler/stubBuilder/TypeClsStubBuilder.kt
index 1e84b49c1bb..93e614d8809 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/decompiler/stubBuilder/TypeClsStubBuilder.kt
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/decompiler/stubBuilder/TypeClsStubBuilder.kt
@@ -19,6 +19,7 @@ package org.jetbrains.kotlin.idea.decompiler.stubBuilder
 import com.google.protobuf.MessageLite
 import com.intellij.psi.PsiElement
 import com.intellij.psi.stubs.StubElement
+import com.intellij.util.SmartList
 import org.jetbrains.kotlin.builtins.KotlinBuiltIns
 import org.jetbrains.kotlin.lexer.KtModifierKeywordToken
 import org.jetbrains.kotlin.lexer.KtTokens
@@ -80,10 +81,7 @@ class TypeClsStubBuilder(private val c: ClsStubBuilderContext) {
         val shouldBuildAsFunctionType = KotlinBuiltIns.isNumberedFunctionClassFqName(classId.asSingleFqName().toUnsafe())
                                         && type.getArgumentList().none { it.getProjection() == Projection.STAR }
         if (shouldBuildAsFunctionType) {
-            val extension = annotations.any { annotation ->
-                val fqName = annotation.asSingleFqName()
-                fqName == KotlinBuiltIns.FQ_NAMES.extensionFunctionType || fqName == KotlinBuiltIns.FQ_NAMES.deprecatedExtensionAnnotation
-            }
+            val extension = annotations.any { annotation -> annotation.asSingleFqName() == KotlinBuiltIns.FQ_NAMES.extension }
             createFunctionTypeStub(parent, type, extension)
             return
         }
diff --git a/idea/idea-completion/testData/basic/multifile/ExcludedClass/ExcludedClass.dependency.kt b/idea/idea-completion/testData/basic/multifile/ExcludedClass/ExcludedClass.dependency.kt
index 9c158cd19a9..48876406d8c 100644
--- a/idea/idea-completion/testData/basic/multifile/ExcludedClass/ExcludedClass.dependency.kt
+++ b/idea/idea-completion/testData/basic/multifile/ExcludedClass/ExcludedClass.dependency.kt
@@ -1,5 +1,5 @@
 package somePackage
 
 class ExcludedClass
-// Such strange name here needed to make completion prefix not intersecting with kotlin.ExtensionFunctionType
-class ExctraClass
+// Such strange name here needed to make completion prefix not intersecting with kotlin.Extension
+class ExctraClass
\ No newline at end of file
diff --git a/idea/idea-completion/testData/basic/multifile/ExcludedJavaClass/somePackage/ExctraClass.java b/idea/idea-completion/testData/basic/multifile/ExcludedJavaClass/somePackage/ExctraClass.java
index 91c938f629b..b1cda98a37b 100644
--- a/idea/idea-completion/testData/basic/multifile/ExcludedJavaClass/somePackage/ExctraClass.java
+++ b/idea/idea-completion/testData/basic/multifile/ExcludedJavaClass/somePackage/ExctraClass.java
@@ -1,6 +1,6 @@
 package somePackage;
 
-// Such strange name here needed to make completion prefix not intersecting with kotlin.ExtensionFunctionType
+// Such strange name here needed to make completion prefix not intersecting with kotlin.Extension
 public class ExctraClass {
 
-}
+}
\ No newline at end of file
diff --git a/idea/idea-completion/testData/basic/multifile/NotImportedExtensionFunction2/NotImportedExtensionFunction2.dependency.kt b/idea/idea-completion/testData/basic/multifile/NotImportedExtensionFunction2/NotImportedExtensionFunction2.dependency.kt
index 8f11ef2651d..e7a45fcbefd 100644
--- a/idea/idea-completion/testData/basic/multifile/NotImportedExtensionFunction2/NotImportedExtensionFunction2.dependency.kt
+++ b/idea/idea-completion/testData/basic/multifile/NotImportedExtensionFunction2/NotImportedExtensionFunction2.dependency.kt
@@ -6,7 +6,7 @@ fun (() -> Unit)?.helloFun1() {
 fun Function0<Unit>.helloFun2() {
 }
 
-fun @ExtensionFunctionType Function1<String, Unit>.helloFun3() {
+fun @Extension Function1<String, Unit>.helloFun3() {
 }
 
 fun Function1<String, Unit>.helloFun4() {
diff --git a/idea/idea-completion/testData/basic/multifile/NotImportedExtensionFunction3/NotImportedExtensionFunction3.dependency.kt b/idea/idea-completion/testData/basic/multifile/NotImportedExtensionFunction3/NotImportedExtensionFunction3.dependency.kt
index d55d4b4675c..c418879227e 100644
--- a/idea/idea-completion/testData/basic/multifile/NotImportedExtensionFunction3/NotImportedExtensionFunction3.dependency.kt
+++ b/idea/idea-completion/testData/basic/multifile/NotImportedExtensionFunction3/NotImportedExtensionFunction3.dependency.kt
@@ -6,10 +6,10 @@ fun (String.() -> Unit)?.helloFun1() {
 fun Function0<Unit>.helloFun2() {
 }
 
-fun @ExtensionFunctionType Function1<String, Unit>.helloFun3() {
+fun @Extension Function1<String, Unit>.helloFun3() {
 }
 
-fun @ExtensionFunctionType Function1<Int, Unit>.helloFun4() {
+fun @Extension Function1<Int, Unit>.helloFun4() {
 }
 
 fun Function1<String, Unit>.helloFun5() {
diff --git a/idea/testData/decompiler/decompiledText/FunctionTypes.expected.kt b/idea/testData/decompiler/decompiledText/FunctionTypes.expected.kt
index d6ff09810bf..c4a07d88f6a 100644
--- a/idea/testData/decompiler/decompiledText/FunctionTypes.expected.kt
+++ b/idea/testData/decompiler/decompiledText/FunctionTypes.expected.kt
@@ -10,7 +10,7 @@ public final class FunctionTypes public constructor() {
 
     public final fun f3(f: kotlin.Int.(kotlin.Int) -> kotlin.Unit): kotlin.Unit { /* compiled code */ }
 
-    public final fun f4(f: kotlin.List<@kotlin.ExtensionFunctionType kotlin.Function1<*, *>>): kotlin.Unit { /* compiled code */ }
+    public final fun f4(f: kotlin.List<@kotlin.Extension kotlin.Function1<*, *>>): kotlin.Unit { /* compiled code */ }
 
     public final fun <A> (A.(A) -> A)?.bar(): kotlin.Unit { /* compiled code */ }
 
@@ -19,4 +19,4 @@ public final class FunctionTypes public constructor() {
     public final fun <IP, R, P1> ((IP) -> R).compose2(f: (P1) -> IP): (P1) -> R { /* compiled code */ }
 
     public final fun <A> (A.(A) -> A).foo(): kotlin.Unit { /* compiled code */ }
-}
+}
\ No newline at end of file
diff --git a/idea/testData/decompiler/decompiledText/FunctionTypes/FunctionTypes.kt b/idea/testData/decompiler/decompiledText/FunctionTypes/FunctionTypes.kt
index fba30f2e6d5..dbc4041dd83 100644
--- a/idea/testData/decompiler/decompiledText/FunctionTypes/FunctionTypes.kt
+++ b/idea/testData/decompiler/decompiledText/FunctionTypes/FunctionTypes.kt
@@ -21,9 +21,9 @@ class FunctionTypes {
     public fun f2(f: Function2<Int, *, String>) {
     }
 
-    public fun f3(f: @ExtensionFunctionType Function2<Int, Int, Unit>) {
+    public fun f3(f: @Extension Function2<Int, Int, Unit>) {
     }
 
-    public fun f4(f: List<@ExtensionFunctionType Function1<*, *>>) {
+    public fun f4(f: List<@Extension Function1<*, *>>) {
     }
 }
diff --git a/idea/testData/decompiler/stubBuilder/Types/Types.kt b/idea/testData/decompiler/stubBuilder/Types/Types.kt
index 6d91e6fcdff..4b92c32a0b5 100644
--- a/idea/testData/decompiler/stubBuilder/Types/Types.kt
+++ b/idea/testData/decompiler/stubBuilder/Types/Types.kt
@@ -19,7 +19,7 @@ abstract class Types {
 
     abstract val starList: List<*>
     abstract val starFun: Function1<*, *>
-    abstract val extFun: @ExtensionFunctionType Function2<Int, Int, Unit>
-    abstract val listExtStarFun: List<@ExtensionFunctionType Function1<*, *>>
+    abstract val extFun: @Extension Function2<Int, Int, Unit>
+    abstract val listExtStarFun: List<@Extension Function1<*, *>>
     abstract val funTypeWithStarAndNonStar: Function1<*, Int>
-}
+}
\ No newline at end of file
diff --git a/idea/testData/decompiler/stubBuilder/Types/Types.txt b/idea/testData/decompiler/stubBuilder/Types/Types.txt
index 8fb79fb06a7..b3b7f3fac0f 100644
--- a/idea/testData/decompiler/stubBuilder/Types/Types.txt
+++ b/idea/testData/decompiler/stubBuilder/Types/Types.txt
@@ -252,13 +252,13 @@ PsiJetFileStubImpl[package=test]
             TYPE_ARGUMENT_LIST:
               TYPE_PROJECTION:[projectionKind=NONE]
                 TYPE_REFERENCE:
-                  ANNOTATION_ENTRY:[hasValueArguments=false, shortName=ExtensionFunctionType]
+                  ANNOTATION_ENTRY:[hasValueArguments=false, shortName=Extension]
                     CONSTRUCTOR_CALLEE:
                       TYPE_REFERENCE:
                         USER_TYPE:[isAbsoluteInRootPackage=false]
                           USER_TYPE:[isAbsoluteInRootPackage=false]
                             REFERENCE_EXPRESSION:[referencedName=kotlin]
-                          REFERENCE_EXPRESSION:[referencedName=ExtensionFunctionType]
+                          REFERENCE_EXPRESSION:[referencedName=Extension]
                   USER_TYPE:[isAbsoluteInRootPackage=false]
                     USER_TYPE:[isAbsoluteInRootPackage=false]
                       REFERENCE_EXPRESSION:[referencedName=kotlin]
diff --git a/idea/testData/unifier/equivalence/types/function0.kt b/idea/testData/unifier/equivalence/types/function0.kt
index 3ba48fd2994..039b31f2fff 100644
--- a/idea/testData/unifier/equivalence/types/function0.kt
+++ b/idea/testData/unifier/equivalence/types/function0.kt
@@ -4,4 +4,4 @@ val c: <selection>() -> String</selection> = { "" }
 val d: () -> kotlin.String = { "" }
 val e: () -> Unit = {  }
 val f: Any.() -> String = { "" }
-val g: @ExtensionFunctionType Function1<String, String> = { "" }
+val g: @Extension Function1<String, String> = { "" }
diff --git a/idea/testData/unifier/equivalence/types/function1.kt b/idea/testData/unifier/equivalence/types/function1.kt
index 80c3db320b5..f62fb7dc609 100644
--- a/idea/testData/unifier/equivalence/types/function1.kt
+++ b/idea/testData/unifier/equivalence/types/function1.kt
@@ -5,6 +5,6 @@ val d: (n: Int) -> kotlin.String = { "" }
 val e: (String) -> Int = { 0 }
 val f: () -> Int = { 0 }
 val g: Int.() -> String = { "" }
-val h: @ExtensionFunctionType Function2<Int, Int, String> = { "" }
+val h: @Extension Function2<Int, Int, String> = { "" }
 val i: (m: Int) -> kotlin.String = { "" }
-val j: @ExtensionFunctionType Function1<Int, String> = { "" }
+val j: @Extension Function1<Int, String> = { "" }
diff --git a/idea/testData/unifier/equivalence/types/function1.kt.match b/idea/testData/unifier/equivalence/types/function1.kt.match
index a75481cc86d..9c50410998c 100644
--- a/idea/testData/unifier/equivalence/types/function1.kt.match
+++ b/idea/testData/unifier/equivalence/types/function1.kt.match
@@ -10,4 +10,4 @@ Int.() -> String
 
 (m: Int) -> kotlin.String
 
-@ExtensionFunctionType Function1<Int, String>
+@Extension Function1<Int, String>
diff --git a/idea/testData/unifier/equivalence/types/function2.kt b/idea/testData/unifier/equivalence/types/function2.kt
index 2aaf150181b..31f21c5aecb 100644
--- a/idea/testData/unifier/equivalence/types/function2.kt
+++ b/idea/testData/unifier/equivalence/types/function2.kt
@@ -6,6 +6,6 @@ val e: (String) -> Int = { 0 }
 val f: () -> Int = { 0 }
 val g: Any.(Int) -> String = { "" }
 val h: Int.(Any) -> String = { "" }
-val i: @ExtensionFunctionType Function3<Any, Any, Int, String> = { a, b -> "" }
+val i: @Extension Function3<Any, Any, Int, String> = { a, b -> "" }
 val j: (t: Any, u: Int) -> kotlin.String = { a, b ->  "" }
-val k: @ExtensionFunctionType Function2<Any, Int, String> = { "" }
+val k: @Extension Function2<Any, Int, String> = { "" }
diff --git a/idea/testData/unifier/equivalence/types/function2.kt.match b/idea/testData/unifier/equivalence/types/function2.kt.match
index fd9b5475119..2fa4558f6dd 100644
--- a/idea/testData/unifier/equivalence/types/function2.kt.match
+++ b/idea/testData/unifier/equivalence/types/function2.kt.match
@@ -10,4 +10,4 @@ Any.(Int) -> String
 
 (t: Any, u: Int) -> kotlin.String
 
-@ExtensionFunctionType Function2<Any, Int, String>
+@Extension Function2<Any, Int, String>
diff --git a/spec-docs/function-types.md b/spec-docs/function-types.md
index 2bc6ac06cd8..51e16c939a3 100644
--- a/spec-docs/function-types.md
+++ b/spec-docs/function-types.md
@@ -23,7 +23,7 @@ Kotlin lambdas are translated to subclasses of this abstract class, passing the
 
 ## Extension functions
 
-Extension function type `T.(P) -> R` is now just a shorthand for `@ExtensionFunctionType Function2<T, P, R>`.
+Extension function type `T.(P) -> R` is now just a shorthand for `@Extension Function2<T, P, R>`.
 `kotlin.extension` is a **type annotation** defined in built-ins.
 So effectively functions and extension functions now have the same type,
 which means that everything which takes a function will work with an extension function and vice versa.
@@ -40,7 +40,7 @@ or an extension function expression where a function is expected and vice versa.
 If you really want to do that, change the shape, assign literal to a variable or use the `as` operator.
 
 So basically you can now safely coerce values between function and extension function types,
-but still should invoke them in the format which you specified in their type (with or without `@ExtensionFunctionType`).
+but still should invoke them in the format which you specified in their type (with or without `@Extension`).
 
 With this we'll get rid of classes `ExtensionFunction0`, `ExtensionFunction1`, ...
 and the rest of this article will deal only with usual functions.