diff --git a/file b/file
index e0ebbecb171..402b79ba46a 100755
--- a/file
+++ b/file
@@ -318,8 +318,9 @@ elif state == 'link':
     if os.path.isabs(src):
         abs_src = src
     else:
-        abs_src = os.path.join(os.path.dirname(dest))
-    if not os.path.exists(abssrc):
+        # FIXME: this does not seem correct? -- MPD
+        abs_src = os.path.dirname(dest)
+    if not os.path.exists(abs_src):
         fail_json(dest=dest, src=src, msg='src file does not exist')
    
     if prev_state == 'absent':