diff --git a/java/java-impl/src/com/intellij/refactoring/util/InlineUtil.java b/java/java-impl/src/com/intellij/refactoring/util/InlineUtil.java
index 0fbce084a213..6fd5ff28eedf 100644
--- a/java/java-impl/src/com/intellij/refactoring/util/InlineUtil.java
+++ b/java/java-impl/src/com/intellij/refactoring/util/InlineUtil.java
@@ -24,6 +24,7 @@ import com.intellij.psi.*;
 import com.intellij.psi.search.searches.ReferencesSearch;
 import com.intellij.psi.util.PsiTreeUtil;
 import com.intellij.psi.util.RedundantCastUtil;
+import com.intellij.psi.util.TypeConversionUtil;
 import com.intellij.refactoring.RefactoringBundle;
 import com.intellij.util.Function;
 import com.intellij.util.IncorrectOperationException;
@@ -54,7 +55,8 @@ public class InlineUtil {
     ChangeContextUtil.encodeContextInfo(initializer, false);
     PsiExpression expr = (PsiExpression)ref.replace(initializer);
     PsiType exprType = expr.getType();
-    if (exprType != null && !varType.equals(exprType)) {
+    if (exprType != null && (!varType.equals(exprType) && varType instanceof PsiPrimitiveType
+                             || !TypeConversionUtil.isAssignable(varType, exprType))) {
       boolean matchedTypes = false;
       //try explicit type arguments
       final PsiElementFactory elementFactory = JavaPsiFacade.getInstance(manager.getProject()).getElementFactory();
diff --git a/java/java-tests/testData/refactoring/inlineLocal/Wildcard.java b/java/java-tests/testData/refactoring/inlineLocal/Wildcard.java
new file mode 100644
index 000000000000..581682b6b9a2
--- /dev/null
+++ b/java/java-tests/testData/refactoring/inlineLocal/Wildcard.java
@@ -0,0 +1,11 @@
+import java.util.*;
+class Test {
+  void foo() {
+    final Collection<? extends Number> extensions = getExtensions();
+    for (Number extension : exte<caret>nsions) {
+    }
+  }
+
+  Collection<? extends Number> getExtensions() {return null;}
+}
+
diff --git a/java/java-tests/testData/refactoring/inlineLocal/Wildcard.java.after b/java/java-tests/testData/refactoring/inlineLocal/Wildcard.java.after
new file mode 100644
index 000000000000..351037abb958
--- /dev/null
+++ b/java/java-tests/testData/refactoring/inlineLocal/Wildcard.java.after
@@ -0,0 +1,10 @@
+import java.util.*;
+class Test {
+  void foo() {
+      for (Number extension : getExtensions()) {
+    }
+  }
+
+  Collection<? extends Number> getExtensions() {return null;}
+}
+
diff --git a/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineLocalTest.java b/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineLocalTest.java
index af0c14e070aa..5e4f8f12b8c1 100644
--- a/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineLocalTest.java
+++ b/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineLocalTest.java
@@ -110,6 +110,10 @@ public class InlineLocalTest extends LightCodeInsightTestCase {
     doTest(true);
   }
 
+  public void testWildcard() throws Exception {
+    doTest(true);
+  }
+
   private void doTest(final boolean inlineDef, String conflictMessage) throws Exception {
     try {
       doTest(inlineDef);