diff --git a/lib/checkclass.cpp b/lib/checkclass.cpp
index 9d61cd552..cd7939285 100644
--- a/lib/checkclass.cpp
+++ b/lib/checkclass.cpp
@@ -177,9 +177,20 @@ CheckClass::Var *CheckClass::getVarList(const Token *tok1, bool withClasses, boo
         else if (withClasses && (Token::Match(next, "%type% :: %type% <") ||
                                  Token::Match(next, "%type% <")))
         {
-            while (next && next->str() != ">")
-                next = next->next();
-            if (Token::Match(next, "> %var% ;"))
+            // find matching ">"
+            int level = 0;
+            for (; next; next = next->next())
+            {
+                if (next->str() == "<")
+                    level++;
+                else if (next->str() == ">")
+                {
+                    level--;
+                    if (level == 0)
+                        break;
+                }
+            }
+            if (next && Token::Match(next, "> %var% ;"))
                 varname = next->strAt(1);
         }
 
diff --git a/test/testclass.cpp b/test/testclass.cpp
index 8cc326f3e..3f02db551 100644
--- a/test/testclass.cpp
+++ b/test/testclass.cpp
@@ -118,6 +118,7 @@ private:
         TEST_CASE(const20); // ticket #1602
         TEST_CASE(const21); // ticket #1683
         TEST_CASE(const22);
+        TEST_CASE(const23); // ticket #1699
         TEST_CASE(constoperator1);  // operator< can often be const
         TEST_CASE(constoperator2);	// operator<<
         TEST_CASE(constincdec);     // increment/decrement => non-const
@@ -3331,6 +3332,19 @@ private:
         ASSERT_EQUALS("", errout.str());
     }
 
+    void const23()
+    {
+        checkConst("class Class {\n"
+                   "public:\n"
+                   "    typedef Template<double> Type;\n"
+                   "    typedef Template2<Type> Type2;\n"
+                   "    void set_member(Type2 m) { _m = m; }\n"
+                   "private:\n"
+                   "    Type2 _m;\n"
+                   "};\n");
+        ASSERT_EQUALS("", errout.str());
+    }
+
     // increment/decrement => not const
     void constincdec()
     {