diff --git a/java/java-impl-refactorings/src/com/intellij/refactoring/extractMethod/newImpl/ExtractOptionsPipeline.kt b/java/java-impl-refactorings/src/com/intellij/refactoring/extractMethod/newImpl/ExtractOptionsPipeline.kt
index b97a3634e209..3cc003a33dc9 100644
--- a/java/java-impl-refactorings/src/com/intellij/refactoring/extractMethod/newImpl/ExtractOptionsPipeline.kt
+++ b/java/java-impl-refactorings/src/com/intellij/refactoring/extractMethod/newImpl/ExtractOptionsPipeline.kt
@@ -125,7 +125,7 @@ object ExtractMethodPipeline {
     if (statement != null && JavaHighlightUtil.isSuperOrThisCall(statement, true, true)) {
       return extractOptions.copy(isStatic = true)
     }
-    val shouldBeStatic = PsiUtil.getEnclosingStaticElement(extractOptions.elements.first(), null) != null
+    val shouldBeStatic = PsiUtil.getEnclosingStaticElement(extractOptions.elements.first(), extractOptions.targetClass) != null
     return extractOptions.copy(isStatic = shouldBeStatic)
   }
 
diff --git a/java/java-tests/testData/refactoring/extractMethodAndDuplicatesInplace/NonStaticExtractFromStaticInner.java b/java/java-tests/testData/refactoring/extractMethodAndDuplicatesInplace/NonStaticExtractFromStaticInner.java
new file mode 100644
index 000000000000..2cb82c2b663c
--- /dev/null
+++ b/java/java-tests/testData/refactoring/extractMethodAndDuplicatesInplace/NonStaticExtractFromStaticInner.java
@@ -0,0 +1,8 @@
+class Test<T> {
+
+    static class Inner<I extends Integer, T>{
+        public void get(List<T> list, I i) {
+            <selection>list.get(i);</selection>
+        }
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/refactoring/extractMethodAndDuplicatesInplace/NonStaticExtractFromStaticInner_after.java b/java/java-tests/testData/refactoring/extractMethodAndDuplicatesInplace/NonStaticExtractFromStaticInner_after.java
new file mode 100644
index 000000000000..d5fabe1cf50d
--- /dev/null
+++ b/java/java-tests/testData/refactoring/extractMethodAndDuplicatesInplace/NonStaticExtractFromStaticInner_after.java
@@ -0,0 +1,12 @@
+class Test<T> {
+
+    static class Inner<I extends Integer, T>{
+        public void get(List<T> list, I i) {
+            extracted(list, i);
+        }
+
+        private void extracted(List<T> list, I i) {
+            list.get(i);
+        }
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/refactoring/extractMethodAndDuplicatesInplace/TypeParametersInNonStaticTarget.java b/java/java-tests/testData/refactoring/extractMethodAndDuplicatesInplace/TypeParametersInNonStaticTarget.java
new file mode 100644
index 000000000000..2cb82c2b663c
--- /dev/null
+++ b/java/java-tests/testData/refactoring/extractMethodAndDuplicatesInplace/TypeParametersInNonStaticTarget.java
@@ -0,0 +1,8 @@
+class Test<T> {
+
+    static class Inner<I extends Integer, T>{
+        public void get(List<T> list, I i) {
+            <selection>list.get(i);</selection>
+        }
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/refactoring/extractMethodAndDuplicatesInplace/TypeParametersInNonStaticTarget_after.java b/java/java-tests/testData/refactoring/extractMethodAndDuplicatesInplace/TypeParametersInNonStaticTarget_after.java
new file mode 100644
index 000000000000..0500fdf8ca5e
--- /dev/null
+++ b/java/java-tests/testData/refactoring/extractMethodAndDuplicatesInplace/TypeParametersInNonStaticTarget_after.java
@@ -0,0 +1,12 @@
+class Test<T> {
+
+    static class Inner<I extends Integer, T>{
+        public void get(List<T> list, I i) {
+            extracted(list, i);
+        }
+
+        private static <I extends Integer> void extracted(List<T> list, I i) {
+            list.get(i);
+        }
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/refactoring/ExtractMethodAndDuplicatesInplaceTest.kt b/java/java-tests/testSrc/com/intellij/java/refactoring/ExtractMethodAndDuplicatesInplaceTest.kt
index 89804426c764..a6d342519380 100644
--- a/java/java-tests/testSrc/com/intellij/java/refactoring/ExtractMethodAndDuplicatesInplaceTest.kt
+++ b/java/java-tests/testSrc/com/intellij/java/refactoring/ExtractMethodAndDuplicatesInplaceTest.kt
@@ -492,6 +492,18 @@ class ExtractMethodAndDuplicatesInplaceTest: LightJavaCodeInsightTestCase() {
     doTest()
   }
 
+  fun testTypeParametersInNonStaticTarget(){
+    JavaRefactoringSettings.getInstance().EXTRACT_STATIC_METHOD = true
+    shouldSelectTargetClass("Inner in Test")
+    doTest()
+  }
+
+  fun testNonStaticExtractFromStaticInner(){
+    shouldSelectTargetClass("Inner in Test")
+    JavaRefactoringSettings.getInstance().EXTRACT_STATIC_METHOD = false
+    doTest()
+  }
+
   fun testRefactoringListener(){
     templateTest {
       configureByFile("$BASE_PATH/${getTestName(false)}.java")