diff --git a/m4/init.m4 b/m4/init.m4
index 9b809ad5b..a79500695 100644
--- a/m4/init.m4
+++ b/m4/init.m4
@@ -62,7 +62,7 @@ dnl Distinguish between old-style and new-style calls.
 m4_ifval([$2],
 [AC_DIAGNOSE([obsolete],
              [$0: two- and three-arguments forms are deprecated.])
-m4_ifval([$3], [_AM_SET_OPTION([no-define])])dnl
+m4_ifval([$3], [_AM_SET_OPTION([no-define])], [m4_ifdef(_AM_MANGLE_OPTION([no-define]), [m4_undefine(_AM_MANGLE_OPTION([no-define])])])dnl
  AC_SUBST([PACKAGE], [$1])dnl
  AC_SUBST([VERSION], [$2])],
 [_AM_SET_OPTIONS([$1])dnl