diff --git a/dvc/stage.py b/dvc/stage.py
index 1708e1797..eef50c6f8 100644
--- a/dvc/stage.py
+++ b/dvc/stage.py
@@ -231,7 +231,8 @@ class Stage(object):
         if not fname:
             fname = path.basename(out.path) + cls.STAGE_FILE_SUFFIX
 
-        cwd = path.dirname(out.path) if not cwd or add else cwd
+        if not cwd or (add and out.is_local):
+            cwd = path.dirname(out.path)
 
         return (fname, cwd)