diff --git a/lib/ci/gitlab_ci_yaml_processor.rb b/lib/ci/gitlab_ci_yaml_processor.rb
index caa815f720f..94a63508f79 100644
--- a/lib/ci/gitlab_ci_yaml_processor.rb
+++ b/lib/ci/gitlab_ci_yaml_processor.rb
@@ -60,7 +60,7 @@ module Ci
         name: job[:name].to_s,
         allow_failure: job[:allow_failure] || false,
         when: job[:when] || 'on_success',
-        environment: job[:environment],
+        environment: job.fetch(:environment, {})[:name],
         yaml_variables: yaml_variables(name),
         options: {
           image: job[:image],
@@ -69,6 +69,7 @@ module Ci
           cache: job[:cache],
           dependencies: job[:dependencies],
           after_script: job[:after_script],
+          environment: job[:environment],
         }.compact
       }
     end
diff --git a/lib/gitlab/ci/config/node/environment.rb b/lib/gitlab/ci/config/node/environment.rb
index 6f04180039e..e2fb1ab131e 100644
--- a/lib/gitlab/ci/config/node/environment.rb
+++ b/lib/gitlab/ci/config/node/environment.rb
@@ -3,28 +3,45 @@ module Gitlab
     class Config
       module Node
         ##
-        # Entry that represents environment variables.
+        # Entry that represents an environment.
         #
         class Environment < Entry
           include Validatable
 
           validations do
-            include LegacyValidationHelpers
+            validates :name, presence: true
 
             validate do
-              unless string_or_array_of_strings?(config)
-                errors.add(:config,
-                           'should be a string or an array of strings')
+              unless hash? || string?
+                errors.add(:config, 'should be a hash or a string')
               end
             end
-
-            def string_or_array_of_strings?(field)
-              validate_string(field) || validate_array_of_strings(field)
-            end
+          end
+
+          def hash?
+            @config.is_a?(Hash)
+          end
+
+          def string?
+            @config.is_a?(String)
+          end
+
+          def name
+            case
+            when string? then @config
+            when hash? then @config[:name]
+            end
+          end
+
+          def url
+            @config[:url] if hash?
           end
 
           def value
-            Array(@config)
+            case
+            when string? then { name: @config }
+            when hash? then @config
+            end
           end
         end
       end
diff --git a/lib/gitlab/ci/config/node/job.rb b/lib/gitlab/ci/config/node/job.rb
index 0cbdf7619c0..e90e80171a4 100644
--- a/lib/gitlab/ci/config/node/job.rb
+++ b/lib/gitlab/ci/config/node/job.rb
@@ -13,7 +13,7 @@ module Gitlab
                             type stage when artifacts cache dependencies before_script
                             after_script variables environment]
 
-          attributes :tags, :allow_failure, :when, :environment, :dependencies
+          attributes :tags, :allow_failure, :when, :dependencies
 
           validations do
             validates :config, allowed_keys: ALLOWED_KEYS
@@ -78,6 +78,9 @@ module Gitlab
           node :artifacts, Artifacts,
             description: 'Artifacts configuration for this job.'
 
+          node :environment, Environment,
+               description: 'Environment configuration for this job.'
+
           helpers :before_script, :script, :stage, :type, :after_script,
                   :cache, :image, :services, :only, :except, :variables,
                   :artifacts, :commands
@@ -133,6 +136,7 @@ module Gitlab
               only: only,
               except: except,
               variables: variables_defined? ? variables : nil,
+              environment: environment_defined? ? environment : nil,
               artifacts: artifacts,
               after_script: after_script }
           end
diff --git a/spec/lib/gitlab/ci/config/node/environment_spec.rb b/spec/lib/gitlab/ci/config/node/environment_spec.rb
new file mode 100644
index 00000000000..27238f9c887
--- /dev/null
+++ b/spec/lib/gitlab/ci/config/node/environment_spec.rb
@@ -0,0 +1,125 @@
+require 'spec_helper'
+
+describe Gitlab::Ci::Config::Node::Environment do
+  let(:entry) { described_class.new(config) }
+
+  before { entry.compose! }
+
+  context 'when configuration is a string' do
+    let(:config) { 'production' }
+
+    describe '#string?' do
+      it 'is string configuration' do
+        expect(entry).to be_string
+      end
+    end
+
+    describe '#hash?' do
+      it 'is not hash configuration' do
+        expect(entry).not_to be_hash
+      end
+    end
+
+    describe '#valid?' do
+      it 'is valid' do
+        expect(entry).to be_valid
+      end
+    end
+
+    describe '#value' do
+      it 'returns valid hash' do
+        expect(entry.value).to eq(name: 'production')
+      end
+    end
+
+    describe '#name' do
+      it 'returns environment name' do
+        expect(entry.name).to eq 'production'
+      end
+    end
+
+    describe '#url' do
+      it 'returns environment url' do
+        expect(entry.url).to be_nil
+      end
+    end
+  end
+
+  context 'when configuration is a hash' do
+    let(:config) do
+      { name: 'development', url: 'https://example.gitlab.com' }
+    end
+
+    describe '#string?' do
+      it 'is not string configuration' do
+        expect(entry).not_to be_string
+      end
+    end
+
+    describe '#hash?' do
+      it 'is hash configuration' do
+        expect(entry).to be_hash
+      end
+    end
+
+    describe '#valid?' do
+      it 'is valid' do
+        expect(entry).to be_valid
+      end
+    end
+
+    describe '#value' do
+      it 'returns valid hash' do
+        expect(entry.value).to eq config
+      end
+    end
+
+    describe '#name' do
+      it 'returns environment name' do
+        expect(entry.name).to eq 'development'
+      end
+    end
+
+    describe '#url' do
+      it 'returns environment url' do
+        expect(entry.url).to eq 'https://example.gitlab.com'
+      end
+    end
+  end
+
+  context 'when configuration is invalid' do
+    context 'when configuration is an array' do
+      let(:config) { ['env'] }
+
+      describe '#valid?' do
+        it 'is not valid' do
+          expect(entry).not_to be_valid
+        end
+      end
+
+      describe '#errors' do
+        it 'contains error about invalid type' do
+          expect(entry.errors)
+            .to include 'environment config should be a hash or a string'
+        end
+      end
+    end
+
+    context 'when environment name is not present' do
+      let(:config) { { url: 'https://example.gitlab.com' } }
+
+      describe '#valid?' do
+        it 'is not valid' do
+          expect(entry).not_to be_valid
+        end
+      end
+
+      describe '#errors?' do
+        it 'contains error about missing environment name' do
+          expect(entry.errors)
+            .to include "environment name can't be blank"
+        end
+      end
+    end
+  end
+end