diff --git a/python/src/com/jetbrains/python/codeInsight/codeFragment/PyCodeFragmentUtil.java b/python/src/com/jetbrains/python/codeInsight/codeFragment/PyCodeFragmentUtil.java
index 7e0b3e6d5244..025b3c573d87 100644
--- a/python/src/com/jetbrains/python/codeInsight/codeFragment/PyCodeFragmentUtil.java
+++ b/python/src/com/jetbrains/python/codeInsight/codeFragment/PyCodeFragmentUtil.java
@@ -59,8 +59,8 @@ public class PyCodeFragmentUtil {
     for (PsiElement element : filterElementsInScope(getInputElements(subGraph, graph), owner)) {
       final String name = getName(element);
       if (name != null) {
-        // Ignore "self", it is generated automatically when extracting any method fragment
-        if (PyPsiUtils.isMethodContext(element) && "self".equals(name)) {
+        // Ignore "self" and "cls", they are generated automatically when extracting any method fragment
+        if (resolvesToBoundMethodParameter(element)) {
           continue;
         }
         if (globalWrites.contains(name)) {
@@ -82,6 +82,33 @@ public class PyCodeFragmentUtil {
     return new PyCodeFragment(inputNames, outputNames, globalWrites, subGraphAnalysis.returns > 0);
   }
 
+  private static boolean resolvesToBoundMethodParameter(@NotNull PsiElement element) {
+    if (PyPsiUtils.isMethodContext(element)) {
+      final PyFunction function = PsiTreeUtil.getParentOfType(element, PyFunction.class);
+      if (function != null) {
+        final PsiReference reference = element.getReference();
+        if (reference != null) {
+          final PsiElement resolved = reference.resolve();
+          if (resolved instanceof PyParameter) {
+            final PyParameterList parameterList = PsiTreeUtil.getParentOfType(resolved, PyParameterList.class);
+            if (parameterList != null) {
+              final PyParameter[] parameters = parameterList.getParameters();
+              if (parameters.length > 0) {
+                if (resolved == parameters[0]) {
+                  final PyFunction.Modifier modifier = function.getModifier();
+                  if (modifier == null || modifier == PyFunction.Modifier.CLASSMETHOD) {
+                    return true;
+                  }
+                }
+              }
+            }
+          }
+        }
+      }
+    }
+    return false;
+  }
+
   @Nullable
   private static String getName(@NotNull PsiElement element) {
     if (element instanceof PsiNamedElement) {
diff --git a/python/testData/refactoring/extractmethod/ClassMethod.after.py b/python/testData/refactoring/extractmethod/ClassMethod.after.py
index b1305936b574..52040554331e 100644
--- a/python/testData/refactoring/extractmethod/ClassMethod.after.py
+++ b/python/testData/refactoring/extractmethod/ClassMethod.after.py
@@ -1,8 +1,8 @@
 class C:
     @classmethod
     def baz(cls):
-        print "hello world"
+        print('foo', cls)
 
     @classmethod
     def foo(cls):
-        cls.baz()
\ No newline at end of file
+        cls.baz()
diff --git a/python/testData/refactoring/extractmethod/ClassMethod.before.py b/python/testData/refactoring/extractmethod/ClassMethod.before.py
index 55471bc18288..79ac2f015574 100644
--- a/python/testData/refactoring/extractmethod/ClassMethod.before.py
+++ b/python/testData/refactoring/extractmethod/ClassMethod.before.py
@@ -1,4 +1,4 @@
 class C:
     @classmethod
     def foo(cls):
-        <selection>print "hello world"</selection>
\ No newline at end of file
+        <selection>print('foo', cls)</selection>