diff --git a/java/idea-ui/src/com/intellij/ide/util/newProjectWizard/SelectTemplateStep.java b/java/idea-ui/src/com/intellij/ide/util/newProjectWizard/SelectTemplateStep.java
index c74c9276a5fe..913eec825c2d 100644
--- a/java/idea-ui/src/com/intellij/ide/util/newProjectWizard/SelectTemplateStep.java
+++ b/java/idea-ui/src/com/intellij/ide/util/newProjectWizard/SelectTemplateStep.java
@@ -26,6 +26,7 @@ import com.intellij.openapi.actionSystem.AnAction;
 import com.intellij.openapi.actionSystem.AnActionEvent;
 import com.intellij.openapi.actionSystem.CustomShortcutSet;
 import com.intellij.openapi.application.ApplicationManager;
+import com.intellij.openapi.components.StorageScheme;
 import com.intellij.openapi.module.Module;
 import com.intellij.openapi.module.ModuleManager;
 import com.intellij.openapi.options.ConfigurationException;
@@ -470,6 +471,9 @@ public class SelectTemplateStep extends ModuleWizardStep implements SettingsStep
       myModuleBuilder.setModuleFilePath(
         FileUtil.toSystemIndependentName(myModuleFileLocation.getText()) + "/" + moduleName + ModuleFileType.DOT_DEFAULT_EXTENSION);
       myModuleBuilder.setContentEntryPath(FileUtil.toSystemIndependentName(getModuleContentRoot()));
+      if (myModuleBuilder instanceof TemplateModuleBuilder) {
+        myWizardContext.setProjectStorageFormat(StorageScheme.DIRECTORY_BASED);
+      }
     }
 
     if (mySettingsStep != null) {