--- generator.c.orig	2017-09-26 19:25:53.000000000 +0200
+++ generator.c	2017-10-01 17:10:28.000000000 +0200
@@ -823,7 +823,7 @@
 	int save_preserve_xattrs = preserve_xattrs;
 	int ok, fd_w;
 
-	if (inplace) {
+	if (inplace && !partial_dir) {
 		/* Let copy_file open the destination in place. */
 		fd_w = -1;
 		copy_to = dest;
@@ -1787,6 +1787,13 @@
 		sx.st = partial_st;
 		fnamecmp = partialptr;
 		fnamecmp_type = FNAMECMP_PARTIAL_DIR;
+		/* We can now have --partial-dir with --inplace, in this case
+		   partialptr will be used as the temp file, so it will be
+		   modified inplace, this to save storage space on receiver.
+		   Then set fnamecmp_type = FNAMECMP_FNAME so that the sender
+		   knows we are modifying the checksumed file inplace. */
+		if (inplace)
+			fnamecmp_type = FNAMECMP_FNAME;
 		statret = 0;
 	}
 
@@ -1794,7 +1801,7 @@
 		goto notify_others;
 
 	if (read_batch || whole_file) {
-		if (inplace && make_backups > 0 && fnamecmp_type == FNAMECMP_FNAME) {
+		if (inplace && !partial_dir && make_backups > 0 && fnamecmp_type == FNAMECMP_FNAME) {
 			if (!(backupptr = get_backup_name(fname)))
 				goto cleanup;
 			if (!(back_file = make_file(fname, NULL, NULL, 0, NO_FILTERS)))
@@ -1830,7 +1837,7 @@
 		goto notify_others;
 	}
 
-	if (inplace && make_backups > 0 && fnamecmp_type == FNAMECMP_FNAME) {
+	if (inplace && !partial_dir && make_backups > 0 && fnamecmp_type == FNAMECMP_FNAME) {
 		if (!(backupptr = get_backup_name(fname))) {
 			close(fd);
 			goto cleanup;
--- receiver.c.orig	2017-09-26 17:56:18.000000000 +0200
+++ receiver.c	2017-10-02 17:05:17.000000000 +0200
@@ -518,6 +518,7 @@
 {
 	int fd1,fd2;
 	STRUCT_STAT st;
+	STRUCT_STAT partial_st;
 	int iflags, xlen;
 	char *fname, fbuf[MAXPATHLEN];
 	char xname[MAXPATHLEN];
@@ -541,6 +542,16 @@
 	if (delay_updates)
 		delayed_bits = bitbag_create(cur_flist->used + 1);
 
+	if (inplace && partial_dir) {
+		/* we will need the partial_dir directory,
+		   let's then create it once for all */
+		partialptr = partial_dir_fname("dummy");
+		if (!handle_partial_dir(partialptr, PDIR_CREATE)) {
+			rsyserr(FERROR_XFER, errno, "Unable to create partial-dir for --inplace\n");
+			exit_cleanup(RERR_FILEIO);
+		}
+	}
+
 	while (1) {
 		cleanup_disable();
 
@@ -689,12 +700,15 @@
 			continue;
 		}
 
-		partialptr = partial_dir ? partial_dir_fname(fname) : fname;
+		partialptr = partial_dir ? partial_dir_fname(fname) : NULL;
 
 		if (protocol_version >= 29) {
 			switch (fnamecmp_type) {
 			case FNAMECMP_FNAME:
 				fnamecmp = fname;
+				/* same existence tests as in generator.c */
+				if (inplace && partialptr && link_stat(partialptr, &partial_st, 0) == 0 && S_ISREG(partial_st.st_mode))
+					fnamecmp = partialptr;
 				break;
 			case FNAMECMP_PARTIAL_DIR:
 				fnamecmp = partialptr;
@@ -733,9 +747,7 @@
 				fnamecmp_type = FNAMECMP_FNAME;
 			}
 		} else {
-			/* Reminder: --inplace && --partial-dir are never
-			 * enabled at the same time. */
-			if (inplace && make_backups > 0) {
+			if (inplace && !partial_dir && make_backups > 0) {
 				if (!(fnamecmp = get_backup_name(fname)))
 					fnamecmp = fname;
 				else
@@ -765,7 +777,7 @@
 		}
 
 		updating_basis_or_equiv = inplace
-		    && (fnamecmp == fname || fnamecmp_type == FNAMECMP_BACKUP);
+		    && (fnamecmp == fname || fnamecmp == partialptr || fnamecmp_type == FNAMECMP_BACKUP);
 
 		if (fd1 == -1) {
 			st.st_mode = 0;
@@ -818,7 +830,7 @@
 
 		/* We now check to see if we are writing the file "inplace" */
 		if (inplace)  {
-			fd2 = do_open(fname, O_WRONLY|O_CREAT, 0600);
+			fd2 = do_open(partialptr ? partialptr : fname, O_WRONLY|O_CREAT, 0600);
 			if (fd2 == -1) {
 				rsyserr(FERROR_XFER, errno, "open %s failed",
 					full_fname(fname));
--- rsync.c.orig	2017-10-01 15:01:56.000000000 +0200
+++ rsync.c	2017-10-01 15:36:50.000000000 +0200
@@ -649,12 +649,15 @@
 	int ret;
 	const char *temp_copy_name = partialptr && *partialptr != '/' ? partialptr : NULL;
 
-	if (inplace) {
+	if (inplace && !partialptr) {
 		if (DEBUG_GTE(RECV, 1))
 			rprintf(FINFO, "finishing %s\n", fname);
 		fnametmp = fname;
 		goto do_set_file_attrs;
 	}
+	if (inplace && partialptr) {
+		fnametmp = partialptr;
+	}
 
 	if (make_backups > 0 && overwriting_basis) {
 		int ok = make_backup(fname, False);
--- options.c.orig	2017-10-01 15:12:15.000000000 +0200
+++ options.c	2017-10-04 19:44:12.000000000 +0200
@@ -2251,13 +2251,14 @@
 
 	if (inplace) {
 #ifdef HAVE_FTRUNCATE
-		if (partial_dir) {
+		/* We are now able to use partial-dir with inplace */
+		/* if (partial_dir) {
 			snprintf(err_buf, sizeof err_buf,
 				 "--%s cannot be used with --%s\n",
 				 append_mode ? "append" : "inplace",
 				 delay_updates ? "delay-updates" : "partial-dir");
 			return 0;
-		}
+		} */
 		/* --inplace implies --partial for refusal purposes, but we
 		 * clear the keep_partial flag for internal logic purposes. */
 		if (refused_partial) {
--- rsync.yo.orig	2015-12-21 21:00:49.000000000 +0100
+++ rsync.yo	2017-10-04 19:52:53.000000000 +0200
@@ -850,7 +850,9 @@
 diverging the entire contents of a file that only has minor changes.
 
 The option implies bf(--partial) (since an interrupted transfer does not delete
-the file), but conflicts with bf(--partial-dir) and bf(--delay-updates).
+the file). If used with bf(--partial-dir), or with any option implying it
+(bf(--delay-update)), the inplace behavior will take place in the partial
+directory, each file being moved to its final destination once completed.
 Prior to rsync 2.6.4 bf(--inplace) was also incompatible with bf(--compare-dest)
 and bf(--link-dest).