diff --git a/src/services/formatting/rules.ts b/src/services/formatting/rules.ts
index 815237df228..36ea7de23b4 100644
--- a/src/services/formatting/rules.ts
+++ b/src/services/formatting/rules.ts
@@ -198,7 +198,7 @@ namespace ts.formatting {
             rule("NoSpaceAfterCloseAngularBracket",
                 SyntaxKind.GreaterThanToken,
                 [SyntaxKind.OpenParenToken, SyntaxKind.OpenBracketToken, SyntaxKind.GreaterThanToken, SyntaxKind.CommaToken],
-                [isNonJsxSameLineTokenContext, isTypeArgumentOrParameterOrAssertionContext],
+                [isNonJsxSameLineTokenContext, isTypeArgumentOrParameterOrAssertionContext, isNotFunctionDeclContext /*To prevent an interference with the SpaceBeforeOpenParenInFuncDecl rule*/],
                 RuleAction.Delete),
 
             // decorators
@@ -542,6 +542,10 @@ namespace ts.formatting {
         return false;
     }
 
+    function isNotFunctionDeclContext(context: FormattingContext): boolean {
+        return !isFunctionDeclContext(context);
+    }
+
     function isFunctionDeclarationOrFunctionExpressionContext(context: FormattingContext): boolean {
         return context.contextNode.kind === SyntaxKind.FunctionDeclaration || context.contextNode.kind === SyntaxKind.FunctionExpression;
     }
diff --git a/tests/cases/fourslash/formattingSpaceBeforeFunctionParen.ts b/tests/cases/fourslash/formattingSpaceBeforeFunctionParen.ts
index ce85521879e..42e48ecd38d 100644
--- a/tests/cases/fourslash/formattingSpaceBeforeFunctionParen.ts
+++ b/tests/cases/fourslash/formattingSpaceBeforeFunctionParen.ts
@@ -4,6 +4,7 @@
 /////*2*/function boo  () { }
 /////*3*/var bar = function foo() { };
 /////*4*/var foo = { bar() { } };
+/////*5*/function tmpl <T> () { }
 
 format.setOption("InsertSpaceBeforeFunctionParenthesis", true);
 
@@ -16,4 +17,6 @@ verify.currentLineContentIs('function boo () { }');
 goTo.marker('3');
 verify.currentLineContentIs('var bar = function foo () { };');
 goTo.marker('4');
-verify.currentLineContentIs('var foo = { bar () { } };');
\ No newline at end of file
+verify.currentLineContentIs('var foo = { bar () { } };');
+goTo.marker('5');
+verify.currentLineContentIs('function tmpl<T> () { }');
diff --git a/tests/cases/fourslash/genericsFormatting.ts b/tests/cases/fourslash/genericsFormatting.ts
index f5e44522a8e..bb2a218a440 100644
--- a/tests/cases/fourslash/genericsFormatting.ts
+++ b/tests/cases/fourslash/genericsFormatting.ts
@@ -15,7 +15,7 @@
 ////foo()<number, string, T >();
 ////(a + b)<number, string, T >();
 ////
-////function bar<T>() {
+/////*inFunctionDeclaration*/function bar <T> () {
 /////*inClassExpression*/    return class  <  T2 > {
 ////    }
 ////}
@@ -42,6 +42,9 @@ verify.currentLineContentIs("    new <T>(a: T);");
 goTo.marker("inOptionalMethodSignature");
 verify.currentLineContentIs("    op?<T, M>(a: T, b: M);");
 
+goTo.marker("inFunctionDeclaration");
+verify.currentLineContentIs("function bar<T>() {");
+
 goTo.marker("inClassExpression");
 verify.currentLineContentIs("    return class <T2> {");