diff --git a/src/ecwrapper.cpp b/src/ecwrapper.cpp
index ebaa35026..3377dce0c 100644
--- a/src/ecwrapper.cpp
+++ b/src/ecwrapper.cpp
@@ -193,7 +193,7 @@ bool CECKey::SetPubKey(const unsigned char* pubkey, size_t size) {
     return o2i_ECPublicKey(&pkey, &pubkey, size) != NULL;
 }
 
-bool CECKey::Sign(const uint256 &hash, std::vector<unsigned char>& vchSig, bool lowS) {
+bool CECKey::Sign(const uint256 &hash, std::vector<unsigned char>& vchSig) {
     vchSig.clear();
     ECDSA_SIG *sig = ECDSA_do_sign((unsigned char*)&hash, sizeof(hash), pkey);
     if (sig == NULL)
@@ -205,7 +205,7 @@ bool CECKey::Sign(const uint256 &hash, std::vector<unsigned char>& vchSig, bool
     BIGNUM *halforder = BN_CTX_get(ctx);
     EC_GROUP_get_order(group, order, ctx);
     BN_rshift1(halforder, order);
-    if (lowS && BN_cmp(sig->s, halforder) > 0) {
+    if (BN_cmp(sig->s, halforder) > 0) {
         // enforce low S values, by negating the value (modulo the order) if above order/2.
         BN_sub(sig->s, order, sig->s);
     }
diff --git a/src/ecwrapper.h b/src/ecwrapper.h
index 3457ca5f5..a7847d190 100644
--- a/src/ecwrapper.h
+++ b/src/ecwrapper.h
@@ -28,7 +28,7 @@ public:
     bool SetPrivKey(const unsigned char* privkey, size_t size, bool fSkipCheck=false);
     void GetPubKey(std::vector<unsigned char>& pubkey, bool fCompressed);
     bool SetPubKey(const unsigned char* pubkey, size_t size);
-    bool Sign(const uint256 &hash, std::vector<unsigned char>& vchSig, bool lowS);
+    bool Sign(const uint256 &hash, std::vector<unsigned char>& vchSig);
     bool Verify(const uint256 &hash, const std::vector<unsigned char>& vchSig);
     bool SignCompact(const uint256 &hash, unsigned char *p64, int &rec);
 
diff --git a/src/key.cpp b/src/key.cpp
index 1b539d073..0ca9a681a 100644
--- a/src/key.cpp
+++ b/src/key.cpp
@@ -102,7 +102,7 @@ CPubKey CKey::GetPubKey() const {
     return result;
 }
 
-bool CKey::Sign(const uint256 &hash, std::vector<unsigned char>& vchSig, bool lowS) const {
+bool CKey::Sign(const uint256 &hash, std::vector<unsigned char>& vchSig) const {
     if (!fValid)
         return false;
 #ifdef USE_SECP256K1
@@ -119,7 +119,7 @@ bool CKey::Sign(const uint256 &hash, std::vector<unsigned char>& vchSig, bool lo
 #else
     CECKey key;
     key.SetSecretBytes(vch);
-    return key.Sign(hash, vchSig, lowS);
+    return key.Sign(hash, vchSig);
 #endif
 }
 
diff --git a/src/key.h b/src/key.h
index f36e658de..0bb05482c 100644
--- a/src/key.h
+++ b/src/key.h
@@ -122,7 +122,7 @@ public:
     CPubKey GetPubKey() const;
 
     //! Create a DER-serialized signature.
-    bool Sign(const uint256& hash, std::vector<unsigned char>& vchSig, bool lowS = true) const;
+    bool Sign(const uint256& hash, std::vector<unsigned char>& vchSig) const;
 
     /**
      * Create a compact signature (65 bytes), which allows reconstructing the used public key.
diff --git a/src/test/script_tests.cpp b/src/test/script_tests.cpp
index a41552fea..cff1664a1 100644
--- a/src/test/script_tests.cpp
+++ b/src/test/script_tests.cpp
@@ -95,6 +95,48 @@ void DoTest(const CScript& scriptPubKey, const CScript& scriptSig, int flags, bo
     BOOST_CHECK_MESSAGE(VerifyScript(scriptSig, scriptPubKey, flags, SignatureChecker(BuildSpendingTransaction(scriptSig, BuildCreditingTransaction(scriptPubKey)), 0)) == expect, message);
 }
 
+void static NegateSignatureS(std::vector<unsigned char>& vchSig) {
+    // Parse the signature.
+    std::vector<unsigned char> r, s;
+    r = std::vector<unsigned char>(vchSig.begin() + 4, vchSig.begin() + 4 + vchSig[3]);
+    s = std::vector<unsigned char>(vchSig.begin() + 6 + vchSig[3], vchSig.begin() + 6 + vchSig[3] + vchSig[5 + vchSig[3]]);
+    unsigned char hashtype = vchSig.back();
+
+    // Really ugly to implement mod-n negation here, but it would be feature creep to expose such functionality from libsecp256k1.
+    static const unsigned char order[33] = {
+        0x00,
+        0xFF, 0xFF, 0xFF, 0xFF, 0xFF, 0xFF, 0xFF, 0xFF,
+        0xFF, 0xFF, 0xFF, 0xFF, 0xFF, 0xFF, 0xFF, 0xFE,
+        0xBA, 0xAE, 0xDC, 0xE6, 0xAF, 0x48, 0xA0, 0x3B,
+        0xBF, 0xD2, 0x5E, 0x8C, 0xD0, 0x36, 0x41, 0x41
+    };
+    while (s.size() < 33) {
+        s.insert(s.begin(), 0x00);
+    }
+    int carry = 0;
+    for (int p = 32; p >= 1; p--) {
+        int n = (int)order[p] - s[p] - carry;
+        s[p] = (n + 256) & 0xFF;
+        carry = (n < 0);
+    }
+    assert(carry == 0);
+    if (s.size() > 1 && s[0] == 0 && s[1] < 0x80) {
+        s.erase(s.begin());
+    }
+
+    // Reconstruct the signature.
+    vchSig.clear();
+    vchSig.push_back(0x30);
+    vchSig.push_back(4 + r.size() + s.size());
+    vchSig.push_back(0x02);
+    vchSig.push_back(r.size());
+    vchSig.insert(vchSig.end(), r.begin(), r.end());
+    vchSig.push_back(0x02);
+    vchSig.push_back(s.size());
+    vchSig.insert(vchSig.end(), s.begin(), s.end());
+    vchSig.push_back(hashtype);
+}
+
 namespace
 {
 const unsigned char vchKey0[32] = {0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,1};
@@ -194,7 +236,10 @@ public:
         uint256 hash = SignatureHash(scriptPubKey, spendTx, 0, nHashType);
         std::vector<unsigned char> vchSig, r, s;
         do {
-            key.Sign(hash, vchSig, lenS <= 32);
+            key.Sign(hash, vchSig);
+            if ((lenS == 33) != (vchSig[5 + vchSig[3]] == 33)) {
+                NegateSignatureS(vchSig);
+            }
             r = std::vector<unsigned char>(vchSig.begin() + 4, vchSig.begin() + 4 + vchSig[3]);
             s = std::vector<unsigned char>(vchSig.begin() + 6 + vchSig[3], vchSig.begin() + 6 + vchSig[3] + vchSig[5 + vchSig[3]]);
         } while (lenR != r.size() || lenS != s.size());