diff --git a/lib/ansible/modules/files/file.py b/lib/ansible/modules/files/file.py
index a977a45c960..8beb68848e2 100644
--- a/lib/ansible/modules/files/file.py
+++ b/lib/ansible/modules/files/file.py
@@ -159,6 +159,27 @@ def _ansible_excepthook(exc_type, exc_value, tb):
 
 def additional_parameter_handling(params):
     """Additional parameter validation and reformatting"""
+    # When path is a directory, rewrite the pathname to be the file inside of the directory
+    # TODO: Why do we exclude link?  Why don't we exclude directory?  Should we exclude touch?
+    # I think this is where we want to be in the future:
+    # when isdir(path):
+    # if state == absent:  Remove the directory
+    # if state == touch:   Touch the directory
+    # if state == directory: Assert the directory is the same as the one specified
+    # if state == file:    place inside of the directory (use _original_basename)
+    # if state == link:    place inside of the directory (use _original_basename.  Fallback to src?)
+    # if state == hard:    place inside of the directory (use _original_basename.  Fallback to src?)
+    if (params['state'] not in ("link", "absent") and os.path.isdir(to_bytes(params['path'], errors='surrogate_or_strict'))):
+        basename = None
+
+        if params['_original_basename']:
+            basename = params['_original_basename']
+        elif params['src']:
+            basename = os.path.basename(params['src'])
+
+        if basename:
+            params['path'] = os.path.join(params['path'], basename)
+
     # state should default to file, but since that creates many conflicts,
     # default state to 'current' when it exists.
     prev_state = get_state(to_bytes(params['path'], errors='surrogate_or_strict'))
@@ -186,19 +207,6 @@ def additional_parameter_handling(params):
         # raise ParameterError(results={"msg": "src option requires state to be 'link' or 'hard'",
         #                               "path": params["path"]})
 
-    # When path is a directory, rewrite the pathname to be the file inside of the directory
-    # TODO: Why do we exclude link?  Why don't we exclude directory?  Should we exclude touch?
-    if (params['state'] not in ("link", "absent") and os.path.isdir(to_bytes(params['path'], errors='surrogate_or_strict'))):
-        basename = None
-
-        # _original_basename is used by other modules that depend on file to construct a correct
-        # destination path when the destination path was a directory
-        if params['_original_basename']:
-            basename = params['_original_basename']
-
-        if basename:
-            params['path'] = params['path'] = os.path.join(params['path'], basename)
-
 
 def get_state(path):
     ''' Find out current state '''