diff --git a/python/src/com/jetbrains/python/PyBundle.properties b/python/src/com/jetbrains/python/PyBundle.properties
index d5abb38450ad..ab7db3c65134 100644
--- a/python/src/com/jetbrains/python/PyBundle.properties
+++ b/python/src/com/jetbrains/python/PyBundle.properties
@@ -149,6 +149,7 @@ refactoring.extract.method.error.cannot.perform.refactoring.no.corresponding.loo
 refactoring.extract.method.error.cannot.perform.refactoring.when.execution.flow.is.interrupted=Cannot perform refactoring when execution flow is interrupted
 refactoring.extract.method.error.cannot.perform.refactoring.when.from.import.inside=Cannot perform refactoring with from import statement inside code block
 refactoring.extract.method.error.cannot.perform.refactoring.using.selected.elements=Cannot perform extract method using selected element(s)
+refactoring.extract.method.error.name.clash=Method name clashes with already existing method name
 
 ### Annotators ###
 ANN.deleting.none=deleting None
diff --git a/python/src/com/jetbrains/python/refactoring/extractmethod/PyExtractMethodUtil.java b/python/src/com/jetbrains/python/refactoring/extractmethod/PyExtractMethodUtil.java
index 2b4bc0cee830..df24916f769e 100644
--- a/python/src/com/jetbrains/python/refactoring/extractmethod/PyExtractMethodUtil.java
+++ b/python/src/com/jetbrains/python/refactoring/extractmethod/PyExtractMethodUtil.java
@@ -20,10 +20,13 @@ import com.intellij.refactoring.extractMethod.AbstractVariableData;
 import com.intellij.refactoring.extractMethod.ExtractMethodDecorator;
 import com.intellij.refactoring.extractMethod.ExtractMethodValidator;
 import com.intellij.refactoring.util.CommonRefactoringUtil;
+import com.intellij.util.Function;
 import com.intellij.util.containers.hash.HashMap;
+import com.jetbrains.python.PyBundle;
 import com.jetbrains.python.PythonLanguage;
 import com.jetbrains.python.psi.*;
 import com.jetbrains.python.psi.impl.PyPsiUtils;
+import org.jetbrains.annotations.NotNull;
 
 import java.util.ArrayList;
 import java.util.List;
@@ -341,12 +344,16 @@ public class PyExtractMethodUtil {
   private static Pair<String, AbstractVariableData[]> getNameAndVariableData(final Project project,
                                                                              final CodeFragment fragment,
                                                                              final PsiElement element) {
+      final ExtractMethodValidator validator = new PyExtractMethodValidator(element, project);
     if (ApplicationManager.getApplication().isUnitTestMode()){
-
       String name = System.getProperty(NAME);
       if (name == null){
         name = "foo";
       }
+      final String result = validator.check(name);
+      if (result != null){
+        throw new CommonRefactoringUtil.RefactoringErrorHintException(result);
+      }
       final List<AbstractVariableData> data = new ArrayList<AbstractVariableData>();
       for (String in : fragment.getInputVariables()) {
         final AbstractVariableData d = new AbstractVariableData();
@@ -358,16 +365,6 @@ public class PyExtractMethodUtil {
       return Pair.create(name, data.toArray(new AbstractVariableData[data.size()]));
     }
 
-    final ExtractMethodValidator validator = new ExtractMethodValidator() {
-      public String check(final String name) {
-        // TODO[oleg] implement context for name clashes
-        return null;
-      }
-
-      public boolean isValidName(final String name) {
-        return LanguageNamesValidation.INSTANCE.forLanguage(PythonLanguage.getInstance()).isIdentifier(name, project);
-      }
-    };
     final boolean isMethod = PyPsiUtils.isMethodContext(element);
     final ExtractMethodDecorator decorator = new ExtractMethodDecorator() {
       public String createMethodPreview(final String methodName, final AbstractVariableData[] variableDatas) {
@@ -402,5 +399,49 @@ public class PyExtractMethodUtil {
     return Pair.create(dialog.getMethodName(), dialog.getVariableData());
   }
 
+  private static class PyExtractMethodValidator implements ExtractMethodValidator {
+    private final PsiElement myElement;
+    private final Project myProject;
+    private final Function<String, Boolean> myFunction;
+
+    public PyExtractMethodValidator(final PsiElement element, final Project project) {
+      myElement = element;
+      myProject = project;
+      final PsiNamedElement parent = PsiTreeUtil.getParentOfType(myElement, PyFile.class, PyClass.class);
+      if (parent instanceof PyFile){
+        final List<PyFunction> functions = ((PyFile)parent).getTopLevelFunctions();
+        myFunction = new Function<String, Boolean>() {
+          public Boolean fun(@NotNull final String s) {
+            for (PyFunction function : functions) {
+              if (s.equals(function.getName())){
+                return false;
+              }
+            }
+            return true;
+          }
+        };
+      } else
+      if (parent instanceof PyClass){
+        myFunction = new Function<String, Boolean>() {
+          public Boolean fun(@NotNull final String s) {
+            return ((PyClass) parent).findMethodByName(s, true) == null;
+          }
+        };
+      } else {
+        myFunction = null;
+      }
+    }
+
+    public String check(final String name) {
+      if (myFunction != null && !myFunction.fun(name)){
+        return PyBundle.message("refactoring.extract.method.error.name.clash");
+      }
+      return null;
+    }
+
+    public boolean isValidName(final String name) {
+      return LanguageNamesValidation.INSTANCE.forLanguage(PythonLanguage.getInstance()).isIdentifier(name, myProject);
+    }
+  }
 }
 
diff --git a/python/testSrc/com/jetbrains/python/refactoring/PyExtractMethodTest.java b/python/testSrc/com/jetbrains/python/refactoring/PyExtractMethodTest.java
index 2f2285a3a6e4..33b87c32325b 100644
--- a/python/testSrc/com/jetbrains/python/refactoring/PyExtractMethodTest.java
+++ b/python/testSrc/com/jetbrains/python/refactoring/PyExtractMethodTest.java
@@ -69,18 +69,17 @@ public class PyExtractMethodTest extends LightMarkedTestCase {
     doTest("controlFlow/while_output.before.py", "bar", "controlFlow/while_output.after.py");
   }
 
-  // TODO[oleg] implement me!!!
-  //public void testNameCollisionClass() throws Throwable {
-  //  doTest("namesCollision/class.before.py", "hello", "Method name clashes with already existing method name");
-  //}
-  //
-  //public void testNameCollisionFile() throws Throwable {
-  //  doTest("namesCollision/file.before.py", "hello", "Method name clashes with already existing method name");
-  //}
-  //
-  //public void testNameCollisionSuperClass() throws Throwable {
-  //  doTest("namesCollision/superclass.before.py", "hello", "Method name clashes with already existing method name");
-  //}
+  public void testNameCollisionClass() throws Throwable {
+    doTest("namesCollision/class.before.py", "hello", "Method name clashes with already existing method name");
+  }
+
+  public void testNameCollisionFile() throws Throwable {
+    doTest("namesCollision/file.before.py", "hello", "Method name clashes with already existing method name");
+  }
+
+  public void testNameCollisionSuperClass() throws Throwable {
+    doTest("namesCollision/superclass.before.py", "hello", "Method name clashes with already existing method name");
+  }
 
   public void testOutNotEmptyStatements() throws Throwable {
     doTest("outNotEmpty/statements.before.py", "sum_squares", "outNotEmpty/statements.after.py");