diff --git a/gcc/fortran/ChangeLog b/gcc/fortran/ChangeLog
index 712c5a08cfc..68747bcb52e 100644
--- a/gcc/fortran/ChangeLog
+++ b/gcc/fortran/ChangeLog
@@ -1,3 +1,9 @@
+2009-10-29  Janne Blomqvist  <jb@gcc.gnu.org>
+
+	PR fortran/41860
+	* resolve.c (apply_default_init_local): Treat -fno-automatic as if
+	var was saved.
+
 2009-10-28  Rafael Avila de Espindola  <espindola@google.com>
 
 	* trans-common.c (create_common): Set TREE_PUBLIC to false on
diff --git a/gcc/fortran/resolve.c b/gcc/fortran/resolve.c
index b17e8fef182..5a5fcccc1f8 100644
--- a/gcc/fortran/resolve.c
+++ b/gcc/fortran/resolve.c
@@ -8630,7 +8630,8 @@ apply_default_init_local (gfc_symbol *sym)
 
   /* For saved variables, we don't want to add an initializer at 
      function entry, so we just add a static initializer.  */
-  if (sym->attr.save || sym->ns->save_all)
+  if (sym->attr.save || sym->ns->save_all 
+      || gfc_option.flag_max_stack_var_size == 0)
     {
       /* Don't clobber an existing initializer!  */
       gcc_assert (sym->value == NULL);