diff --git a/src/checkclass.cpp b/src/checkclass.cpp
index b208f1675..788afc0c2 100644
--- a/src/checkclass.cpp
+++ b/src/checkclass.cpp
@@ -463,13 +463,15 @@ void CheckClass::privateFunctions()
                     break;
                 --indent_level;
             }
+            else if (indent_level != 1)
+                continue;
             else if (tok->str() == "private:")
                 priv = true;
             else if (tok->str() == "public:")
                 priv = false;
             else if (tok->str() == "protected:")
                 priv = false;
-            else if (priv && indent_level == 1)
+            else if (priv)
             {
                 if (Token::Match(tok, "typedef %type% ("))
                     tok = tok->tokAt(2);
diff --git a/test/testunusedprivfunc.cpp b/test/testunusedprivfunc.cpp
index 93eea2bc7..56ed7f4f3 100644
--- a/test/testunusedprivfunc.cpp
+++ b/test/testunusedprivfunc.cpp
@@ -43,6 +43,8 @@ private:
         TEST_CASE(func_pointer);
 
         TEST_CASE(ctor);
+
+        TEST_CASE(classInClass);
     }
 
 
@@ -235,6 +237,23 @@ private:
     }
 
 
+    void classInClass()
+    {
+        check("class A\n"
+              "{\n"
+              "public:\n"
+              "\n"
+              "    class B\n"
+              "    {\n"
+              "    private:\n"
+              "    };\n"
+              "\n"
+              "    static void f()\n"
+              "    { }\n"
+              "};\n");
+        ASSERT_EQUALS("", errout.str());
+    }
+
 };
 
 REGISTER_TEST(TestUnusedPrivateFunction)