diff --git a/java/java-impl/src/com/intellij/refactoring/introduceparameterobject/IntroduceParameterObjectDialog.java b/java/java-impl/src/com/intellij/refactoring/introduceparameterobject/IntroduceParameterObjectDialog.java
index fa89c769b200..75cfd7930833 100644
--- a/java/java-impl/src/com/intellij/refactoring/introduceparameterobject/IntroduceParameterObjectDialog.java
+++ b/java/java-impl/src/com/intellij/refactoring/introduceparameterobject/IntroduceParameterObjectDialog.java
@@ -112,7 +112,10 @@ public class IntroduceParameterObjectDialog extends RefactoringDialog {
     buttonGroup.add(createNewClassButton);
     buttonGroup.add(myCreateInnerClassRadioButton);
     createNewClassButton.setSelected(true);
-    if (containingClass != null && containingClass.getQualifiedName() == null) {
+    if (containingClass == null ||
+        containingClass.getQualifiedName() == null ||
+        containingClass.getContainingClass() != null ||
+        containingClass.isInterface()) {
       myCreateInnerClassRadioButton.setEnabled(false);
     }
     init();