diff --git a/cobc/cobc.c b/cobc/cobc.c
index 1de39f3f9..63880aa69 100644
--- a/cobc/cobc.c
+++ b/cobc/cobc.c
@@ -387,6 +387,8 @@ static char		*cobc_include;		/* -I... */
 static char		*cobc_ldflags;		/* -Q / COB_LDFLAGS */
 static char		*cb_depend_target;	/* -MT <target>... */
 
+static int		cb_build_inplace = 0;
+
 static size_t		cobc_cflags_size;
 static size_t		cobc_libs_size;
 static size_t		cobc_lib_paths_size;
@@ -4459,6 +4461,7 @@ process_filename (const char *filename)
 		fn->translate = cobc_main_strdup (output_name);
 	} else
 	if (save_all_src || save_temps || save_c_src
+	    || cb_build_inplace
 	    || cb_compile_level == CB_LEVEL_TRANSLATE) {
 		fn->translate = cobc_main_stradd_dup (fbasename, ".c");
 	} else {
@@ -8963,6 +8966,9 @@ finish_setup_compiler_env (void)
 	if (getenv ("COBC_GEN_DUMP_COMMENTS")) {
 		cb_wants_dump_comments = 1;
 	}
+	if (getenv("COBC_BUILD_INPLACE")){
+		cb_build_inplace = 1;
+	}
 }
 
 
diff --git a/tests/testsuite.src/used_binaries.at b/tests/testsuite.src/used_binaries.at
index 047196055..6fd5ab960 100644
--- a/tests/testsuite.src/used_binaries.at
+++ b/tests/testsuite.src/used_binaries.at
@@ -1035,4 +1035,6 @@ AT_DATA([prog2.cob], [
 
 AT_CHECK([$COBC -m --include "$PWD/file.h" -fstatic-call prog2.cob], [0], [], [])
 
+AT_CHECK([COBC_BUILD_INPLACE=1 $COBC -m --include "file.h" -fstatic-call prog2.cob], [0], [], [])
+
 AT_CLEANUP