diff --git a/lib/capistrano/recipes/deploy/strategy/copy.rb b/lib/capistrano/recipes/deploy/strategy/copy.rb
index c1a4abc8..d396d9f3 100644
--- a/lib/capistrano/recipes/deploy/strategy/copy.rb
+++ b/lib/capistrano/recipes/deploy/strategy/copy.rb
@@ -30,7 +30,7 @@ module Capistrano
           File.open(File.join(destination, "REVISION"), "w") { |f| f.puts(revision) }
 
           logger.trace "compressing #{destination} to #{filename}"
-          system(compress(destination, filename).join(" "))
+          Dir.chdir(tmpdir) { system(compress(File.basename(destination), File.basename(filename)).join(" ")) }
 
           put File.read(filename), remote_filename
           run "cd #{configuration[:releases_path]} && #{decompress(remote_filename).join(" ")} && rm #{remote_filename}"
diff --git a/test/deploy/strategy/copy_test.rb b/test/deploy/strategy/copy_test.rb
index ce9cf14b..7079d876 100644
--- a/test/deploy/strategy/copy_test.rb
+++ b/test/deploy/strategy/copy_test.rb
@@ -15,10 +15,11 @@ class DeployStrategyCopyTest < Test::Unit::TestCase
 
   def test_deploy_with_defaults_should_use_tar_gz_and_checkout
     Dir.expects(:tmpdir).returns("/temp/dir")
+    Dir.expects(:chdir).with("/temp/dir").yields
     @source.expects(:checkout).with("154", "/temp/dir/1234567890").returns(:local_checkout)
 
     @strategy.expects(:system).with(:local_checkout)
-    @strategy.expects(:system).with("tar czf /temp/dir/1234567890.tar.gz /temp/dir/1234567890")
+    @strategy.expects(:system).with("tar czf 1234567890.tar.gz 1234567890")
     @strategy.expects(:put).with(:mock_file_contents, "/tmp/1234567890.tar.gz")
     @strategy.expects(:run).with("cd /u/apps/test/releases && tar xzf /tmp/1234567890.tar.gz && rm /tmp/1234567890.tar.gz")
 
@@ -35,11 +36,12 @@ class DeployStrategyCopyTest < Test::Unit::TestCase
 
   def test_deploy_with_export_should_use_tar_gz_and_export
     Dir.expects(:tmpdir).returns("/temp/dir")
+    Dir.expects(:chdir).with("/temp/dir").yields
     @config[:copy_strategy] = :export
     @source.expects(:export).with("154", "/temp/dir/1234567890").returns(:local_export)
 
     @strategy.expects(:system).with(:local_export)
-    @strategy.expects(:system).with("tar czf /temp/dir/1234567890.tar.gz /temp/dir/1234567890")
+    @strategy.expects(:system).with("tar czf 1234567890.tar.gz 1234567890")
     @strategy.expects(:put).with(:mock_file_contents, "/tmp/1234567890.tar.gz")
     @strategy.expects(:run).with("cd /u/apps/test/releases && tar xzf /tmp/1234567890.tar.gz && rm /tmp/1234567890.tar.gz")
 
@@ -56,11 +58,12 @@ class DeployStrategyCopyTest < Test::Unit::TestCase
 
   def test_deploy_with_zip_should_use_zip_and_checkout
     Dir.expects(:tmpdir).returns("/temp/dir")
+    Dir.expects(:chdir).with("/temp/dir").yields
     @config[:copy_compression] = :zip
     @source.expects(:checkout).with("154", "/temp/dir/1234567890").returns(:local_checkout)
 
     @strategy.expects(:system).with(:local_checkout)
-    @strategy.expects(:system).with("zip -qr /temp/dir/1234567890.zip /temp/dir/1234567890")
+    @strategy.expects(:system).with("zip -qr 1234567890.zip 1234567890")
     @strategy.expects(:put).with(:mock_file_contents, "/tmp/1234567890.zip")
     @strategy.expects(:run).with("cd /u/apps/test/releases && unzip -q /tmp/1234567890.zip && rm /tmp/1234567890.zip")
 
@@ -77,11 +80,12 @@ class DeployStrategyCopyTest < Test::Unit::TestCase
 
   def test_deploy_with_bzip2_should_use_zip_and_checkout
     Dir.expects(:tmpdir).returns("/temp/dir")
+    Dir.expects(:chdir).with("/temp/dir").yields
     @config[:copy_compression] = :bzip2
     @source.expects(:checkout).with("154", "/temp/dir/1234567890").returns(:local_checkout)
 
     @strategy.expects(:system).with(:local_checkout)
-    @strategy.expects(:system).with("tar cjf /temp/dir/1234567890.tar.bz2 /temp/dir/1234567890")
+    @strategy.expects(:system).with("tar cjf 1234567890.tar.bz2 1234567890")
     @strategy.expects(:put).with(:mock_file_contents, "/tmp/1234567890.tar.bz2")
     @strategy.expects(:run).with("cd /u/apps/test/releases && tar xjf /tmp/1234567890.tar.bz2 && rm /tmp/1234567890.tar.bz2")
 
@@ -98,11 +102,12 @@ class DeployStrategyCopyTest < Test::Unit::TestCase
 
   def test_deploy_with_custom_copy_dir_should_use_that_as_tmpdir
     Dir.expects(:tmpdir).never
+    Dir.expects(:chdir).with("/other/path").yields
     @config[:copy_dir] = "/other/path"
     @source.expects(:checkout).with("154", "/other/path/1234567890").returns(:local_checkout)
 
     @strategy.expects(:system).with(:local_checkout)
-    @strategy.expects(:system).with("tar czf /other/path/1234567890.tar.gz /other/path/1234567890")
+    @strategy.expects(:system).with("tar czf 1234567890.tar.gz 1234567890")
     @strategy.expects(:put).with(:mock_file_contents, "/tmp/1234567890.tar.gz")
     @strategy.expects(:run).with("cd /u/apps/test/releases && tar xzf /tmp/1234567890.tar.gz && rm /tmp/1234567890.tar.gz")