diff --git a/python/src/com/jetbrains/python/codeInsight/intentions/ConvertFormatOperatorToMethodIntention.java b/python/src/com/jetbrains/python/codeInsight/intentions/ConvertFormatOperatorToMethodIntention.java
index 753d6db758b8..16998e06b103 100644
--- a/python/src/com/jetbrains/python/codeInsight/intentions/ConvertFormatOperatorToMethodIntention.java
+++ b/python/src/com/jetbrains/python/codeInsight/intentions/ConvertFormatOperatorToMethodIntention.java
@@ -304,10 +304,8 @@ public class ConvertFormatOperatorToMethodIntention extends BaseIntentionAction
         }
       }
     }
-    else if (rhsType instanceof PyCollectionType) {
-      if ("dict".equals(rhsType.getName())) {
-        target.append("(**").append(paramText).append(")");
-      }
+    else if (rhsType instanceof PyCollectionType && "dict".equals(rhsType.getName())) {
+      target.append("(**").append(paramText).append(")");
     }
     else target.append("(").append(paramText).append(")"); // tuple is ok as is
     // Correctly handle multiline implicitly concatenated string literals (PY-9176)
diff --git a/python/testData/intentions/PyConvertFormatOperatorToMethodIntentionTest/set.py b/python/testData/intentions/PyConvertFormatOperatorToMethodIntentionTest/set.py
new file mode 100644
index 000000000000..ee39c0e392d3
--- /dev/null
+++ b/python/testData/intentions/PyConvertFormatOperatorToMethodIntentionTest/set.py
@@ -0,0 +1 @@
+print('%s' <caret>% {1, 2})
\ No newline at end of file
diff --git a/python/testData/intentions/PyConvertFormatOperatorToMethodIntentionTest/set_after.py b/python/testData/intentions/PyConvertFormatOperatorToMethodIntentionTest/set_after.py
new file mode 100644
index 000000000000..6d879b230d07
--- /dev/null
+++ b/python/testData/intentions/PyConvertFormatOperatorToMethodIntentionTest/set_after.py
@@ -0,0 +1 @@
+print('{}'.format({1, 2}))
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/intentions/PyConvertFormatOperatorToMethodIntentionTest.java b/python/testSrc/com/jetbrains/python/intentions/PyConvertFormatOperatorToMethodIntentionTest.java
index a8a09adb9f38..e31ec3ad703e 100644
--- a/python/testSrc/com/jetbrains/python/intentions/PyConvertFormatOperatorToMethodIntentionTest.java
+++ b/python/testSrc/com/jetbrains/python/intentions/PyConvertFormatOperatorToMethodIntentionTest.java
@@ -82,5 +82,10 @@ public class PyConvertFormatOperatorToMethodIntentionTest extends PyIntentionTes
   // PY-20803
   public void testStarWidthPrecision() {
     doNegativeTest(PyBundle.message("INTN.replace.with.method"));    
-  }  
+  }
+  
+  // PY-20876
+  public void testSet() {
+    doTest(PyBundle.message("INTN.replace.with.method"), LanguageLevel.PYTHON26);
+  }
 }
\ No newline at end of file