diff --git a/library/files/file b/library/files/file
index 32588e56e6..8d3a71a237 100644
--- a/library/files/file
+++ b/library/files/file
@@ -189,10 +189,11 @@ def main():
 
     elif state in ['link','hard']:
 
-        absrc = src
-        if not os.path.isabs(absrc):
-            absrc = os.path.abspath(src)
-
+        if os.path.isdir(path):
+            relpath = path
+        else:
+            relpath = os.path.dirname(path)
+        absrc = os.path.normpath('%s/%s' % (relpath, os.path.basename(src)))
         if not os.path.exists(absrc) and not force:
             module.fail_json(path=path, src=src, msg='src file does not exist, use "force=yes" if you really want to create the link: %s' % absrc)