diff --git a/mypy/checker.py b/mypy/checker.py
index b8d5bbd4fa2d..ac4b24709783 100644
--- a/mypy/checker.py
+++ b/mypy/checker.py
@@ -1108,6 +1108,7 @@ def check_func_item(
         """
         self.dynamic_funcs.append(defn.is_dynamic() and not type_override)
 
+        enclosing_node_deferred = self.current_node_deferred
         with self.enter_partial_types(is_function=True):
             typ = self.function_type(defn)
             if type_override:
@@ -1119,7 +1120,7 @@ def check_func_item(
                 raise RuntimeError("Not supported")
 
         self.dynamic_funcs.pop()
-        self.current_node_deferred = False
+        self.current_node_deferred = enclosing_node_deferred
 
         if name == "__exit__":
             self.check__exit__return_type(defn)
@@ -5341,6 +5342,7 @@ def check_for_untyped_decorator(
             self.options.disallow_untyped_decorators
             and is_typed_callable(func.type)
             and is_untyped_decorator(dec_type)
+            and not self.current_node_deferred
         ):
             self.msg.typed_function_untyped_decorator(func.name, dec_expr)
 
diff --git a/test-data/unit/check-inference.test b/test-data/unit/check-inference.test
index ff351686dfc2..42b5a05ab39a 100644
--- a/test-data/unit/check-inference.test
+++ b/test-data/unit/check-inference.test
@@ -3945,3 +3945,21 @@ def deco(fn: Callable[[], T]) -> Callable[[], T]: ...
 
 @deco
 def defer() -> int: ...
+
+[case testVariableDeferredWithNestedFunction]
+from typing import Callable, TypeVar
+
+T = TypeVar("T")
+def deco(fn: Callable[[], T]) -> Callable[[], T]: ...
+
+@deco
+def f() -> None:
+    x = 1
+    f()  # defer current node
+    x = x
+
+    def nested() -> None:
+        ...
+
+    # The type below should not be Any.
+    reveal_type(x)  # N: Revealed type is "builtins.int"