diff --git a/src/services/formatting/rules.ts b/src/services/formatting/rules.ts
index 0b6a6ad0bd..4686616c3c 100644
--- a/src/services/formatting/rules.ts
+++ b/src/services/formatting/rules.ts
@@ -231,7 +231,7 @@ module ts.formatting {
             this.NoSpaceBeforeOpenBracket = new Rule(RuleDescriptor.create2(Shared.TokenRange.Any, SyntaxKind.OpenBracketToken), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext), RuleAction.Delete));
             this.NoSpaceAfterOpenBracket = new Rule(RuleDescriptor.create3(SyntaxKind.OpenBracketToken, Shared.TokenRange.Any), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext), RuleAction.Delete));
             this.NoSpaceBeforeCloseBracket = new Rule(RuleDescriptor.create2(Shared.TokenRange.Any, SyntaxKind.CloseBracketToken), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext), RuleAction.Delete));
-            this.NoSpaceAfterCloseBracket = new Rule(RuleDescriptor.create3(SyntaxKind.CloseBracketToken, Shared.TokenRange.Any), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext), RuleAction.Delete));
+            this.NoSpaceAfterCloseBracket = new Rule(RuleDescriptor.create3(SyntaxKind.CloseBracketToken, Shared.TokenRange.Any), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext, Rules.IsNotBeforeBlockInFunctionDeclarationContext), RuleAction.Delete));
 
             // Place a space before open brace in a function declaration
             this.FunctionOpenBraceLeftTokenRange = Shared.TokenRange.AnyIncludingMultilineComments;
@@ -650,6 +650,10 @@ module ts.formatting {
             return context.TokensAreOnSameLine();
         }
 
+        static IsNotBeforeBlockInFunctionDeclarationContext(context: FormattingContext): boolean {
+            return !Rules.IsFunctionDeclContext(context) && !Rules.IsBeforeBlockContext(context)
+        }
+
         static IsEndOfDecoratorContextOnSameLine(context: FormattingContext): boolean {
             return context.TokensAreOnSameLine() &&
                 context.contextNode.decorators &&
diff --git a/tests/cases/fourslash/formatOnEnterFunctionDeclaration.ts b/tests/cases/fourslash/formatOnEnterFunctionDeclaration.ts
new file mode 100644
index 0000000000..bf3756059d
--- /dev/null
+++ b/tests/cases/fourslash/formatOnEnterFunctionDeclaration.ts
@@ -0,0 +1,8 @@
+/// <reference path="fourslash.ts"/>
+
+/////*0*/function listAPIFiles(path: string): string[] {/*1*/ }
+
+goTo.marker("1");
+edit.insertLine("");
+goTo.marker("0");
+verify.currentLineContentIs("function listAPIFiles(path: string): string[] {");
\ No newline at end of file