diff --git a/drivers/scsi/qla2xxx/qla_mbx.c b/drivers/scsi/qla2xxx/qla_mbx.c
index b01f69dd4b28343dcabdde1a392cd9428c6e8457..abef3b29fa101c407629f99039954846c1dc55df 100644
--- a/drivers/scsi/qla2xxx/qla_mbx.c
+++ b/drivers/scsi/qla2xxx/qla_mbx.c
@@ -3871,6 +3871,7 @@ qla24xx_report_id_acquisition(scsi_qla_host_t *vha,
 					vha->d_id.b24 = 0;
 					vha->d_id.b.al_pa = 1;
 					ha->flags.n2n_bigger = 1;
+					ha->flags.n2n_ae = 0;
 
 					id.b.al_pa = 2;
 					ql_dbg(ql_dbg_async, vha, 0x5075,
@@ -3881,6 +3882,7 @@ qla24xx_report_id_acquisition(scsi_qla_host_t *vha,
 					    "Format 1: Remote login - Waiting for WWPN %8phC.\n",
 					    rptid_entry->u.f1.port_name);
 					ha->flags.n2n_bigger = 0;
+					ha->flags.n2n_ae = 1;
 				}
 				qla24xx_post_newsess_work(vha, &id,
 				    rptid_entry->u.f1.port_name,
@@ -3892,7 +3894,6 @@ qla24xx_report_id_acquisition(scsi_qla_host_t *vha,
 			/* if our portname is higher then initiate N2N login */
 
 			set_bit(N2N_LOGIN_NEEDED, &vha->dpc_flags);
-			ha->flags.n2n_ae = 1;
 			return;
 			break;
 		case TOPO_FL: