diff --git a/git-submodule.sh b/git-submodule.sh
index 8b90589717..3a13397e05 100755
--- a/git-submodule.sh
+++ b/git-submodule.sh
@@ -423,6 +423,7 @@ cmd_update()
 		cmd_init "--" "$@" || return
 	fi
 
+	cloned_modules=
 	module_list "$@" |
 	while read mode sha1 stage path
 	do
@@ -442,6 +443,7 @@ cmd_update()
 		if ! test -d "$path"/.git -o -f "$path"/.git
 		then
 			module_clone "$path" "$url" "$reference"|| exit
+			cloned_modules="$cloned_modules;$name"
 			subsha1=
 		else
 			subsha1=$(clear_local_git_env; cd "$path" &&
@@ -469,6 +471,13 @@ cmd_update()
 				die "Unable to fetch in submodule path '$path'"
 			fi
 
+			# Is this something we just cloned?
+			case ";$cloned_modules;" in
+			*";$name;"*)
+				# then there is no local change to integrate
+				update_module= ;;
+			esac
+
 			case "$update_module" in
 			rebase)
 				command="git rebase"
diff --git a/t/t7406-submodule-update.sh b/t/t7406-submodule-update.sh
index bfb4975e94..fa9d23aa31 100755
--- a/t/t7406-submodule-update.sh
+++ b/t/t7406-submodule-update.sh
@@ -203,4 +203,56 @@ test_expect_success 'submodule init picks up merge' '
 	)
 '
 
+test_expect_success 'submodule update --merge  - ignores --merge  for new submodules' '
+	(cd super &&
+	 rm -rf submodule &&
+	 git submodule update submodule &&
+	 git status -s submodule >expect &&
+	 rm -rf submodule &&
+	 git submodule update --merge submodule &&
+	 git status -s submodule >actual &&
+	 test_cmp expect actual
+	)
+'
+
+test_expect_success 'submodule update --rebase - ignores --rebase for new submodules' '
+	(cd super &&
+	 rm -rf submodule &&
+	 git submodule update submodule &&
+	 git status -s submodule >expect &&
+	 rm -rf submodule &&
+	 git submodule update --rebase submodule &&
+	 git status -s submodule >actual &&
+	 test_cmp expect actual
+	)
+'
+
+test_expect_success 'submodule update ignores update=merge config for new submodules' '
+	(cd super &&
+	 rm -rf submodule &&
+	 git submodule update submodule &&
+	 git status -s submodule >expect &&
+	 rm -rf submodule &&
+	 git config submodule.submodule.update merge &&
+	 git submodule update submodule &&
+	 git status -s submodule >actual &&
+	 git config --unset submodule.submodule.update &&
+	 test_cmp expect actual
+	)
+'
+
+test_expect_success 'submodule update ignores update=rebase config for new submodules' '
+	(cd super &&
+	 rm -rf submodule &&
+	 git submodule update submodule &&
+	 git status -s submodule >expect &&
+	 rm -rf submodule &&
+	 git config submodule.submodule.update rebase &&
+	 git submodule update submodule &&
+	 git status -s submodule >actual &&
+	 git config --unset submodule.submodule.update &&
+	 test_cmp expect actual
+	)
+'
+
 test_done