diff --git a/plugins/gradle/src/META-INF/plugin.xml b/plugins/gradle/src/META-INF/plugin.xml
index febae843cb1b..812af92f92be 100644
--- a/plugins/gradle/src/META-INF/plugin.xml
+++ b/plugins/gradle/src/META-INF/plugin.xml
@@ -111,7 +111,6 @@
                               order="last"/>
     <runConfigurationProducer implementation="org.jetbrains.plugins.gradle.execution.test.runner.PatternGradleConfigurationProducer"
                               order="last"/>
-    <runConfigurationExtension implementation="org.jetbrains.plugins.gradle.execution.ProgramRunConfigurationExtension"/>
 
     <externalSystemExecutionConsoleManager implementation="org.jetbrains.plugins.gradle.execution.GradleExecutionConsoleManager"
                                            id="gradle"/>
diff --git a/plugins/gradle/src/org/jetbrains/plugins/gradle/execution/ProgramRunConfigurationExtension.java b/plugins/gradle/src/org/jetbrains/plugins/gradle/execution/ProgramRunConfigurationExtension.java
deleted file mode 100644
index ecb526253165..000000000000
--- a/plugins/gradle/src/org/jetbrains/plugins/gradle/execution/ProgramRunConfigurationExtension.java
+++ /dev/null
@@ -1,62 +0,0 @@
-/*
- * Copyright 2000-2016 JetBrains s.r.o.
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- * http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
-package org.jetbrains.plugins.gradle.execution;
-
-import com.intellij.execution.CommonProgramRunConfigurationParameters;
-import com.intellij.execution.ExecutionException;
-import com.intellij.execution.RunConfigurationExtension;
-import com.intellij.execution.configurations.*;
-import com.intellij.openapi.externalSystem.util.ExternalSystemApiUtil;
-import com.intellij.openapi.util.text.StringUtil;
-import org.jetbrains.annotations.NotNull;
-import org.jetbrains.jps.model.serialization.PathMacroUtil;
-import org.jetbrains.plugins.gradle.util.GradleConstants;
-
-/**
- * @author Vladislav.Soroka
- * @since 12/28/2015
- */
-public class ProgramRunConfigurationExtension extends RunConfigurationExtension {
-  @Override
-  public <T extends RunConfigurationBase> void updateJavaParameters(T configuration,
-                                                                    JavaParameters params,
-                                                                    RunnerSettings runnerSettings) throws ExecutionException {
-  }
-
-  @Override
-  protected void validateConfiguration(@NotNull RunConfigurationBase configuration, boolean isExecution) throws Exception {
-    super.validateConfiguration(configuration, isExecution);
-    if (configuration instanceof ModuleBasedConfiguration && configuration instanceof CommonProgramRunConfigurationParameters) {
-      final String workingDirectory = ((CommonProgramRunConfigurationParameters)configuration).getWorkingDirectory();
-      if (("$" + PathMacroUtil.MODULE_DIR_MACRO_NAME + "$").equals(workingDirectory)) {
-        final RunConfigurationModule runConfigurationModule = ((ModuleBasedConfiguration)configuration).getConfigurationModule();
-        final String projectPath = ExternalSystemApiUtil.getExternalProjectPath(runConfigurationModule.getModule());
-        if (StringUtil.isNotEmpty(projectPath)) {
-          ((CommonProgramRunConfigurationParameters)configuration).setWorkingDirectory(projectPath);
-        }
-      }
-    }
-  }
-
-  @Override
-  protected boolean isApplicableFor(@NotNull RunConfigurationBase configuration) {
-    if (configuration instanceof ModuleBasedConfiguration && configuration instanceof CommonProgramRunConfigurationParameters) {
-      final RunConfigurationModule runConfigurationModule = ((ModuleBasedConfiguration)configuration).getConfigurationModule();
-      return ExternalSystemApiUtil.isExternalSystemAwareModule(GradleConstants.SYSTEM_ID, runConfigurationModule.getModule());
-    }
-    return false;
-  }
-}