diff --git a/gcc/fortran/ChangeLog b/gcc/fortran/ChangeLog
index 17c419f4ff9..ca6ac2a9bd9 100644
--- a/gcc/fortran/ChangeLog
+++ b/gcc/fortran/ChangeLog
@@ -1,3 +1,9 @@
+2017-01-19  Andre Vehreschild  <vehre@gcc.gnu.org>
+
+	PR fortran/70696
+	* trans-decl.c (gfc_build_qualified_array): Add static decl to parent
+	function only, when the decl-context is not the translation unit.
+
 2017-01-18  Louis Krupp  <louis.krupp@zoho.com>
 
 	PR fortran/50069
diff --git a/gcc/fortran/trans-decl.c b/gcc/fortran/trans-decl.c
index 51c23e8c5df..5d246cd5624 100644
--- a/gcc/fortran/trans-decl.c
+++ b/gcc/fortran/trans-decl.c
@@ -971,7 +971,9 @@ gfc_build_qualified_array (tree decl, gfc_symbol * sym)
 	  DECL_CONTEXT (token) = sym->ns->proc_name->backend_decl;
 	  gfc_module_add_decl (cur_module, token);
 	}
-      else if (sym->attr.host_assoc)
+      else if (sym->attr.host_assoc
+	       && TREE_CODE (DECL_CONTEXT (current_function_decl))
+	       != TRANSLATION_UNIT_DECL)
 	gfc_add_decl_to_parent_function (token);
       else
 	gfc_add_decl_to_function (token);
diff --git a/gcc/testsuite/ChangeLog b/gcc/testsuite/ChangeLog
index dc54c0ae788..e0e0bd5432b 100644
--- a/gcc/testsuite/ChangeLog
+++ b/gcc/testsuite/ChangeLog
@@ -1,3 +1,8 @@
+2017-01-19  Andre Vehreschild  <vehre@gcc.gnu.org>
+
+	PR fortran/70696
+	* gfortran.dg/coarray_43.f90: New test.
+
 2017-01-19  Richard Earnshaw  <rearnsha@arm.com>
 
 	PR rtl-optimization/79121
diff --git a/gcc/testsuite/gfortran.dg/coarray_43.f90 b/gcc/testsuite/gfortran.dg/coarray_43.f90
new file mode 100644
index 00000000000..d5ee4e1a668
--- /dev/null
+++ b/gcc/testsuite/gfortran.dg/coarray_43.f90
@@ -0,0 +1,13 @@
+! { dg-do link }
+! { dg-options "-fcoarray=lib -lcaf_single" }
+
+program coarray_43
+  implicit none
+  integer, parameter :: STR_LEN = 50
+  character(len=STR_LEN) :: str[*]
+  integer :: pos
+  write(str,"(2(a,i2))") "Greetings from image ",this_image()," of ",num_images()
+  block
+    pos = scan(str[5], set="123456789")
+  end block
+end program