diff --git a/app/views/projects/new.html.haml b/app/views/projects/new.html.haml
index 2a98bba05ee..d129da943f8 100644
--- a/app/views/projects/new.html.haml
+++ b/app/views/projects/new.html.haml
@@ -1,5 +1,6 @@
 - page_title    'New Project'
 - header_title  "Projects", dashboard_projects_path
+- visibility_level = params.dig(:project, :visibility_level) || default_project_visibility
 
 .project-edit-container
   .project-edit-errors
@@ -95,7 +96,7 @@
           = f.label :visibility_level, class: 'label-light' do
             Visibility Level
             = link_to icon('question-circle'), help_page_path("public_access/public_access")
-          = render 'shared/visibility_level', f: f, visibility_level: default_project_visibility, can_change_visibility_level: true, form_model: @project, with_label: false
+          = render 'shared/visibility_level', f: f, visibility_level: visibility_level.to_i, can_change_visibility_level: true, form_model: @project, with_label: false
 
         = f.submit 'Create project', class: "btn btn-create project-submit", tabindex: 4
         = link_to 'Cancel', dashboard_projects_path, class: 'btn btn-cancel'
diff --git a/changelogs/unreleased/fix_visibility_level.yml b/changelogs/unreleased/fix_visibility_level.yml
new file mode 100644
index 00000000000..4cf649124ca
--- /dev/null
+++ b/changelogs/unreleased/fix_visibility_level.yml
@@ -0,0 +1,4 @@
+---
+title: Fix visibility level on new project page
+merge_request: 9885
+author: blackst0ne
diff --git a/spec/features/projects/new_project_spec.rb b/spec/features/projects/new_project_spec.rb
index 45185f2dd1f..52196ce49bd 100644
--- a/spec/features/projects/new_project_spec.rb
+++ b/spec/features/projects/new_project_spec.rb
@@ -16,6 +16,15 @@ feature "New project", feature: true do
 
         expect(find_field("project_visibility_level_#{level}")).to be_checked
       end
+
+      it 'saves visibility level on validation error' do
+        visit new_project_path
+
+        choose(key)
+        click_button('Create project')
+
+        expect(find_field("project_visibility_level_#{level}")).to be_checked
+      end
     end
   end