diff --git a/NEWS b/NEWS
index 84f90a60..845f3f30 100644
--- a/NEWS
+++ b/NEWS
@@ -3,6 +3,7 @@
   - --csv/--format options for results command - using format user can explicitly specify what he wants print
   - support for "unresolvable" state of OBS 2.0
   - osc branch reads project/package in package directory
+  - fix creation of package link, when target project has the package via linked project
 
 0.126
  - added VM autosetup to osc. This requires appropriate OBS version and build script version.
diff --git a/osc/core.py b/osc/core.py
index ac64563f..f0f86b6c 100644
--- a/osc/core.py
+++ b/osc/core.py
@@ -3176,10 +3176,17 @@ def link_pac(src_project, src_package, dst_project, dst_package, force, rev='',
                                path_args=(quote_plus(dst_project), quote_plus(dst_package)),
                                template_args=None,
                                create_new=False, apiurl=conf.config['apiurl'])
+        root = ET.fromstring(''.join(dst_meta))
+        print root.attrib['project']
+        if root.attrib['project'] != dst_project:
+           # The source comes from a different project via a project link, we need to create this instance
+           meta_change = True
     except:
+        meta_change = True
+
+    if meta_change:
         src_meta = show_package_meta(conf.config['apiurl'], src_project, src_package)
         dst_meta = replace_pkg_meta(src_meta, dst_package, dst_project)
-        meta_change = True
 
     if disable_publish:
         meta_change = True
@@ -3190,6 +3197,7 @@ def link_pac(src_project, src_package, dst_project, dst_package, force, rev='',
         elm.clear()
         ET.SubElement(elm, 'disable')
         dst_meta = ET.tostring(root)
+
     if meta_change:
         edit_meta('pkg',
                   path_args=(dst_project, dst_package),