diff --git a/compiler/frontend/src/org/jetbrains/kotlin/psi/KtNamedDeclarationStub.java b/compiler/frontend/src/org/jetbrains/kotlin/psi/KtNamedDeclarationStub.java
index 001f854915b..6c45b49b15a 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/psi/KtNamedDeclarationStub.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/psi/KtNamedDeclarationStub.java
@@ -92,7 +92,7 @@ abstract class KtNamedDeclarationStub<T extends KotlinStubWithFqName<?>> extends
 
         PsiElement newIdentifier = KtPsiFactory(this).createNameIdentifierIfPossible(name);
         if (newIdentifier != null) {
-            identifier.replace(newIdentifier);
+            KtPsiUtilKt.astReplace(identifier, newIdentifier);
         }
         else {
             identifier.delete();
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/ktPsiUtil.kt b/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/ktPsiUtil.kt
index 9097ae3e112..09b7027a642 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/ktPsiUtil.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/ktPsiUtil.kt
@@ -568,4 +568,6 @@ fun KtExpression.getLabeledParent(labelName: String): KtLabeledExpression? {
         }
     }
     return null
-}
\ No newline at end of file
+}
+
+fun PsiElement.astReplace(newElement: PsiElement) = parent.node.replaceChild(node, newElement.node)
\ No newline at end of file
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/references/KtSimpleNameReference.kt b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/references/KtSimpleNameReference.kt
index d59cb422fa4..b4e2d3aa20e 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/references/KtSimpleNameReference.kt
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/references/KtSimpleNameReference.kt
@@ -40,10 +40,7 @@ import org.jetbrains.kotlin.name.Name
 import org.jetbrains.kotlin.name.isOneSegmentFQN
 import org.jetbrains.kotlin.plugin.references.SimpleNameReferenceExtension
 import org.jetbrains.kotlin.psi.*
-import org.jetbrains.kotlin.psi.psiUtil.getParentOfTypeAndBranch
-import org.jetbrains.kotlin.psi.psiUtil.getQualifiedElementOrCallableRef
-import org.jetbrains.kotlin.psi.psiUtil.getQualifiedElementSelector
-import org.jetbrains.kotlin.psi.psiUtil.startOffset
+import org.jetbrains.kotlin.psi.psiUtil.*
 import org.jetbrains.kotlin.resolve.BindingContext
 import org.jetbrains.kotlin.resolve.DataClassDescriptorResolver
 import org.jetbrains.kotlin.resolve.ImportedFromObjectCallableDescriptor
@@ -135,7 +132,12 @@ class KtSimpleNameReference(expression: KtSimpleNameExpression) : KtSimpleRefere
             }
         }
 
-        nameElement.replace(element)
+        if (element.node.elementType == KtTokens.IDENTIFIER) {
+            nameElement.astReplace(element)
+        }
+        else {
+            nameElement.replace(element)
+        }
         return expression
     }
 
diff --git a/idea/testData/refactoring/rename/inplace/NoReformat.kt b/idea/testData/refactoring/rename/inplace/NoReformat.kt
new file mode 100644
index 00000000000..304f319e9a5
--- /dev/null
+++ b/idea/testData/refactoring/rename/inplace/NoReformat.kt
@@ -0,0 +1,7 @@
+public class OneLineKotlin {
+    var <caret>subject = 1
+    var aux = 1
+    public fun simple0() { subject }
+    public fun simple1() { subject = 2 }
+    public fun simple2() { aux = subject }
+} 
\ No newline at end of file
diff --git a/idea/testData/refactoring/rename/inplace/NoReformat.kt.after b/idea/testData/refactoring/rename/inplace/NoReformat.kt.after
new file mode 100644
index 00000000000..d5ffffefc1e
--- /dev/null
+++ b/idea/testData/refactoring/rename/inplace/NoReformat.kt.after
@@ -0,0 +1,7 @@
+public class OneLineKotlin {
+    var subject2 = 1
+    var aux = 1
+    public fun simple0() { subject2 }
+    public fun simple1() { subject2 = 2 }
+    public fun simple2() { aux = subject2 }
+} 
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/refactoring/InplaceRenameTest.kt b/idea/tests/org/jetbrains/kotlin/idea/refactoring/InplaceRenameTest.kt
index ec946399811..f1a095a4e1f 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/InplaceRenameTest.kt
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/InplaceRenameTest.kt
@@ -11,6 +11,7 @@ import com.intellij.codeInsight.template.impl.TemplateManagerImpl
 import com.intellij.openapi.actionSystem.CommonDataKeys
 import com.intellij.openapi.actionSystem.impl.SimpleDataContext
 import com.intellij.openapi.command.WriteCommandAction
+import com.intellij.refactoring.rename.inplace.MemberInplaceRenameHandler
 import com.intellij.refactoring.rename.inplace.VariableInplaceRenameHandler
 import com.intellij.testFramework.LightPlatformCodeInsightTestCase
 import com.intellij.testFramework.fixtures.CodeInsightTestUtil
@@ -81,6 +82,10 @@ class InplaceRenameTest : LightPlatformCodeInsightTestCase() {
         doTestInplaceRename("name1")
     }
 
+    fun testNoReformat() {
+        doTestInplaceRename("subject2", MemberInplaceRenameHandler())
+    }
+
     private fun doTestImplicitLambdaParameter(newName: String) {
         configureByFile(getTestName(false) + ".kt")
 
@@ -131,7 +136,7 @@ class InplaceRenameTest : LightPlatformCodeInsightTestCase() {
         checkResultByFile(getTestName(false) + ".kt.after")
     }
 
-    private fun doTestInplaceRename(newName: String?) {
+    private fun doTestInplaceRename(newName: String?, handler: VariableInplaceRenameHandler = VariableInplaceRenameHandler()) {
         configureByFile(getTestName(false) + ".kt")
         val element = TargetElementUtil.findTargetElement(
                 LightPlatformCodeInsightTestCase.myEditor,
@@ -143,7 +148,6 @@ class InplaceRenameTest : LightPlatformCodeInsightTestCase() {
         val dataContext = SimpleDataContext.getSimpleContext(CommonDataKeys.PSI_ELEMENT.name, element!!,
                                                              LightPlatformCodeInsightTestCase.getCurrentEditorDataContext())
 
-        val handler = VariableInplaceRenameHandler()
         if (newName == null) {
             assertFalse(handler.isRenaming(dataContext), "In-place rename is allowed for " + element)
         }