Absence of type is not enough for concluding function has type inference

compiler/frontend/src/org/jetbrains/jet/lang/psi/JetModifiableBlockHelper.java

@@ -65,7 +65,7 @@ public final class JetModifiableBlockHelper {
         if (declaration != null) {
             if (declaration instanceof JetNamedFunction) {
                 JetNamedFunction function = (JetNamedFunction) declaration;
-                if (!function.hasDeclaredReturnType()) {
+                if (!function.hasDeclaredReturnType() && !function.hasBlockBody()) {
                     return true;
                 }
             }

idea/testData/codeInsight/outOfBlock/InFunInFunWithBody.kt

@@ -0,0 +1,6 @@
+// FALSE
+fun test() {
+  fun hello() {
+    <caret>
+  }
+}

idea/tests/org/jetbrains/jet/plugin/codeInsight/OutOfBlockModificationTest.java

@@ -46,6 +46,10 @@ public class OutOfBlockModificationTest extends LightCodeInsightFixtureTestCase
         doTest();
     }
 
+    public void testInFunInFunWithBody() {
+        doTest();
+    }
+
     public void testInFunWithInference() {
         doTest();
     }