diff --git a/app/services/project_transfer_service.rb b/app/services/project_transfer_service.rb
index 7150c1c78c0..7055ef32aee 100644
--- a/app/services/project_transfer_service.rb
+++ b/app/services/project_transfer_service.rb
@@ -18,6 +18,10 @@ class ProjectTransferService
         raise TransferError.new("Project with same path in target namespace already exists")
       end
 
+      # Remove old satellite
+      project.satellite.destroy
+
+      # Apply new namespace id
       project.namespace = new_namespace
       project.save!
 
@@ -29,8 +33,8 @@ class ProjectTransferService
       # Move wiki repo also if present
       gitlab_shell.mv_repository("#{old_path}.wiki", "#{new_path}.wiki")
 
-      # create satellite repo
-      project.ensure_satellite_exists
+      # Create a new satellite (reload project from DB)
+      Project.find(project.id).ensure_satellite_exists
 
       # clear project cached events
       project.reset_events_cache