diff --git a/java/java-impl/src/com/intellij/refactoring/extractMethod/ExtractMethodProcessor.java b/java/java-impl/src/com/intellij/refactoring/extractMethod/ExtractMethodProcessor.java
index 0cdac338ad2c..3eedefaec09a 100644
--- a/java/java-impl/src/com/intellij/refactoring/extractMethod/ExtractMethodProcessor.java
+++ b/java/java-impl/src/com/intellij/refactoring/extractMethod/ExtractMethodProcessor.java
@@ -46,6 +46,7 @@ import com.intellij.openapi.wm.WindowManager;
 import com.intellij.psi.*;
 import com.intellij.psi.codeStyle.CodeStyleManager;
 import com.intellij.psi.codeStyle.CodeStyleSettingsManager;
+import com.intellij.psi.codeStyle.JavaCodeStyleManager;
 import com.intellij.psi.controlFlow.ControlFlowUtil;
 import com.intellij.psi.search.GlobalSearchScope;
 import com.intellij.psi.search.LocalSearchScope;
@@ -1047,7 +1048,7 @@ public class ExtractMethodProcessor implements MatchProvider {
       LOG.assertTrue(qualifierExpression != null);
       qualifierExpression.replace(instanceQualifier);
     }
-    return expr;
+    return (PsiMethodCallExpression)JavaCodeStyleManager.getInstance(myProject).shortenClassReferences(expr);
   }
 
   private void declareNecessaryVariablesInsideBody(PsiCodeBlock body) throws IncorrectOperationException {
diff --git a/java/java-tests/testData/refactoring/extractMethod/InvalidReference.java b/java/java-tests/testData/refactoring/extractMethod/InvalidReference.java
new file mode 100644
index 000000000000..b2addd97207c
--- /dev/null
+++ b/java/java-tests/testData/refactoring/extractMethod/InvalidReference.java
@@ -0,0 +1,7 @@
+import java.io.IOException;
+
+class Test {
+  void foo(Exception targetElement) {
+    PsiPackage aPack = <selection>JavaDirectoryService.getInstance().getPackage((IOException)targetElement)</selection>;
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/refactoring/extractMethod/InvalidReference_after.java b/java/java-tests/testData/refactoring/extractMethod/InvalidReference_after.java
new file mode 100644
index 000000000000..ad34b03d549f
--- /dev/null
+++ b/java/java-tests/testData/refactoring/extractMethod/InvalidReference_after.java
@@ -0,0 +1,11 @@
+import java.io.IOException;
+
+class Test {
+  void foo(Exception targetElement) {
+    PsiPackage aPack = newMethod((IOException) targetElement);
+  }
+
+    private PsiPackage newMethod(IOException targetElement) {
+        return JavaDirectoryService.getInstance().getPackage((IOException)targetElement);
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/refactoring/ExtractMethodTest.java b/java/java-tests/testSrc/com/intellij/refactoring/ExtractMethodTest.java
index 7303de872cc6..3b6667f2c397 100644
--- a/java/java-tests/testSrc/com/intellij/refactoring/ExtractMethodTest.java
+++ b/java/java-tests/testSrc/com/intellij/refactoring/ExtractMethodTest.java
@@ -489,6 +489,10 @@ public class ExtractMethodTest extends LightCodeInsightTestCase {
     doTest();
   }
 
+  public void testInvalidReference() throws Exception {
+    doTest();
+  }
+
   private void doPrepareErrorTest(final String expectedMessage) throws Exception {
     String expectedError = null;
     try {