diff --git a/lib/ci/api/runners.rb b/lib/ci/api/runners.rb
index 192b1d18a51..ea35d0f6dd0 100644
--- a/lib/ci/api/runners.rb
+++ b/lib/ci/api/runners.rb
@@ -28,20 +28,17 @@ module Ci
         post "register" do
           required_attributes! [:token]
 
+          attributes = { description: params[:description],
+                         tag_list: params[:tag_list],
+                         run_untagged: params[:run_untagged] || true }
+
           runner =
             if runner_registration_token_valid?
               # Create shared runner. Requires admin access
-              Ci::Runner.create(
-                description: params[:description],
-                tag_list: params[:tag_list],
-                is_shared: true
-              )
+              Ci::Runner.create(attributes.merge(is_shared: true))
             elsif project = Project.find_by(runners_token: params[:token])
               # Create a specific runner for project.
-              project.runners.create(
-                description: params[:description],
-                tag_list: params[:tag_list]
-              )
+              project.runners.create(attributes)
             end
 
           return forbidden! unless runner
diff --git a/spec/requests/ci/api/runners_spec.rb b/spec/requests/ci/api/runners_spec.rb
index 5d6f5f774ea..eb11258cbbb 100644
--- a/spec/requests/ci/api/runners_spec.rb
+++ b/spec/requests/ci/api/runners_spec.rb
@@ -15,13 +15,17 @@ describe Ci::API::API do
     context 'when runner token is provided' do
       before { post ci_api("/runners/register"), token: registration_token }
 
-      it 'creates runner' do
+      it 'creates runner with default values' do
         expect(response.status).to eq(201)
+        expect(Ci::Runner.first.run_untagged).to be true
       end
     end
 
     context 'when runner description is provided' do
-      before { post ci_api("/runners/register"), token: registration_token, description: "server.hostname" }
+      before do
+        post ci_api("/runners/register"), token: registration_token,
+                                          description: "server.hostname"
+      end
 
       it 'creates runner' do
         expect(response.status).to eq(201)
@@ -30,7 +34,10 @@ describe Ci::API::API do
     end
 
     context 'when runner tags are provided' do
-      before { post ci_api("/runners/register"), token: registration_token, tag_list: "tag1, tag2" }
+      before do
+        post ci_api("/runners/register"), token: registration_token,
+                                          tag_list: "tag1, tag2"
+      end
 
       it 'creates runner' do
         expect(response.status).to eq(201)
@@ -38,6 +45,28 @@ describe Ci::API::API do
       end
     end
 
+    context 'when option for running untagged jobs is provided' do
+      context 'when tags are provided' do
+        it 'creates runner' do
+          post ci_api("/runners/register"), token: registration_token,
+                                            run_untagged: false,
+                                            tag_list: ['tag']
+
+          expect(response.status).to eq(201)
+          expect(Ci::Runner.first.run_untagged).to be false
+        end
+      end
+
+      context 'when tags are not provided' do
+        it 'does not create runner' do
+          post ci_api("/runners/register"), token: registration_token,
+                                            run_untagged: false
+
+          expect(response.status).to eq(404)
+        end
+      end
+    end
+
     context 'when project token is provided' do
       let(:project) { FactoryGirl.create(:empty_project) }
       before { post ci_api("/runners/register"), token: project.runners_token }