diff --git a/lib/checkmemoryleak.cpp b/lib/checkmemoryleak.cpp
index a53a06d5b..8c96509dc 100644
--- a/lib/checkmemoryleak.cpp
+++ b/lib/checkmemoryleak.cpp
@@ -1964,8 +1964,8 @@ void CheckMemoryLeakInFunction::simplifycode(Token *tok)
                 }
                 else
                 {
-                    // remove the "if* ;"
-                    Token::eraseTokens(tok2, tok2->tokAt(3));
+                    // remove the "if*"
+                    Token::eraseTokens(tok2, tok2->tokAt(2));
                 }
                 done = false;
             }
diff --git a/test/testmemleak.cpp b/test/testmemleak.cpp
index c23d64395..17cd57147 100644
--- a/test/testmemleak.cpp
+++ b/test/testmemleak.cpp
@@ -727,6 +727,10 @@ private:
 
         // use ; dealloc ;
         ASSERT_EQUALS("; alloc ; use ; if return ; dealloc ;", simplifycode("; alloc ; use ; if { return ; } dealloc ;"));
+
+        // #2635 - false negative
+        ASSERT_EQUALS("; alloc ; return use ; }",
+                      simplifycode("; alloc ; if(!var) { loop { ifv { } } alloc ; } return use; }"));
     }