diff --git a/build.xml b/build.xml
index b72093b7739..ade85633255 100644
--- a/build.xml
+++ b/build.xml
@@ -567,7 +567,7 @@
                 <enable/>
               </assertions>
               <arg line="@{src}"/>
-              <arg value="-output"/>
+              <arg value="-d"/>
               <arg value="@{output}"/>
               <arg value="-noStdlib"/>
               <arg value="-classpath"/>
diff --git a/compiler/cli/cli-common/src/org/jetbrains/jet/cli/common/arguments/K2JVMCompilerArguments.java b/compiler/cli/cli-common/src/org/jetbrains/jet/cli/common/arguments/K2JVMCompilerArguments.java
index 239c7461da2..106d7b3bd88 100644
--- a/compiler/cli/cli-common/src/org/jetbrains/jet/cli/common/arguments/K2JVMCompilerArguments.java
+++ b/compiler/cli/cli-common/src/org/jetbrains/jet/cli/common/arguments/K2JVMCompilerArguments.java
@@ -28,14 +28,6 @@ public class K2JVMCompilerArguments extends CommonCompilerArguments {
     @ValueDescription("<directory|jar>")
     public String destination;
 
-    @Argument(value = "jar", description = "Resulting .jar file path")
-    @ValueDescription("<path>")
-    public String jar;
-
-    @Argument(value = "output", description = "Output directory path for .class files")
-    @ValueDescription("<path>")
-    public String outputDir;
-
     @Argument(value = "classpath", description = "Paths where to find user class files")
     @ValueDescription("<path>")
     public String classpath;
diff --git a/compiler/cli/src/org/jetbrains/jet/cli/jvm/K2JVMCompiler.java b/compiler/cli/src/org/jetbrains/jet/cli/jvm/K2JVMCompiler.java
index fddc961ef28..f94397b641a 100644
--- a/compiler/cli/src/org/jetbrains/jet/cli/jvm/K2JVMCompiler.java
+++ b/compiler/cli/src/org/jetbrains/jet/cli/jvm/K2JVMCompiler.java
@@ -127,8 +127,8 @@ public class K2JVMCompiler extends CLICompiler<K2JVMCompilerArguments> {
                 outputDir = isJar ? null : new File(destination);
             }
             else {
-                jar = arguments.jar != null ? new File(arguments.jar) : null;
-                outputDir = arguments.outputDir != null ? new File(arguments.outputDir) : null;
+                jar = null;
+                outputDir = null;
             }
 
             if (arguments.module != null) {
diff --git a/compiler/testData/cli/jvm/help.out b/compiler/testData/cli/jvm/help.out
index b9015b7214c..cd706e88ca8 100644
--- a/compiler/testData/cli/jvm/help.out
+++ b/compiler/testData/cli/jvm/help.out
@@ -1,8 +1,6 @@
 Usage: kotlinc-jvm <options> <source files>
 where possible options include:
   -d <directory|jar>         Destination for generated class files
-  -jar <path>                Resulting .jar file path
-  -output <path>             Output directory path for .class files
   -classpath <path>          Paths where to find user class files
   -annotations <path>        Paths to external annotations
   -includeRuntime            Include Kotlin runtime in to resulting .jar
diff --git a/compiler/testData/cli/jvm/inline/off.out b/compiler/testData/cli/jvm/inline/off.out
index b9015b7214c..cd706e88ca8 100644
--- a/compiler/testData/cli/jvm/inline/off.out
+++ b/compiler/testData/cli/jvm/inline/off.out
@@ -1,8 +1,6 @@
 Usage: kotlinc-jvm <options> <source files>
 where possible options include:
   -d <directory|jar>         Destination for generated class files
-  -jar <path>                Resulting .jar file path
-  -output <path>             Output directory path for .class files
   -classpath <path>          Paths where to find user class files
   -annotations <path>        Paths to external annotations
   -includeRuntime            Include Kotlin runtime in to resulting .jar
diff --git a/compiler/testData/cli/jvm/inline/on.out b/compiler/testData/cli/jvm/inline/on.out
index b9015b7214c..cd706e88ca8 100644
--- a/compiler/testData/cli/jvm/inline/on.out
+++ b/compiler/testData/cli/jvm/inline/on.out
@@ -1,8 +1,6 @@
 Usage: kotlinc-jvm <options> <source files>
 where possible options include:
   -d <directory|jar>         Destination for generated class files
-  -jar <path>                Resulting .jar file path
-  -output <path>             Output directory path for .class files
   -classpath <path>          Paths where to find user class files
   -annotations <path>        Paths to external annotations
   -includeRuntime            Include Kotlin runtime in to resulting .jar
diff --git a/compiler/testData/cli/jvm/inline/wrong.out b/compiler/testData/cli/jvm/inline/wrong.out
index cd0cad5b6c1..ea2e1515c81 100644
--- a/compiler/testData/cli/jvm/inline/wrong.out
+++ b/compiler/testData/cli/jvm/inline/wrong.out
@@ -2,8 +2,6 @@ Wrong value for inline option: 'wrong'. Should be 'on'/'off' or 'true'/'false'
 Usage: kotlinc-jvm <options> <source files>
 where possible options include:
   -d <directory|jar>         Destination for generated class files
-  -jar <path>                Resulting .jar file path
-  -output <path>             Output directory path for .class files
   -classpath <path>          Paths where to find user class files
   -annotations <path>        Paths to external annotations
   -includeRuntime            Include Kotlin runtime in to resulting .jar
diff --git a/compiler/testData/cli/jvm/wrongArgument.out b/compiler/testData/cli/jvm/wrongArgument.out
index dd11745c274..059eba87542 100644
--- a/compiler/testData/cli/jvm/wrongArgument.out
+++ b/compiler/testData/cli/jvm/wrongArgument.out
@@ -2,8 +2,6 @@ Invalid argument: -wrongArgument
 Usage: kotlinc-jvm <options> <source files>
 where possible options include:
   -d <directory|jar>         Destination for generated class files
-  -jar <path>                Resulting .jar file path
-  -output <path>             Output directory path for .class files
   -classpath <path>          Paths where to find user class files
   -annotations <path>        Paths to external annotations
   -includeRuntime            Include Kotlin runtime in to resulting .jar