diff --git a/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine.py b/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine.py
index bae26792f5..72c2f36a01 100644
--- a/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine.py
+++ b/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine.py
@@ -202,9 +202,11 @@ options:
             - If a public IP address is created when creating the VM (because a Network Interface was not provided),
               determines if the public IP address remains permanently associated with the Network Interface. If set
               to 'Dynamic' the public IP address may change any time the VM is rebooted or power cycled.
+            - The C(Disabled) choice was added in Ansible 2.6.
         choices:
             - Dynamic
             - Static
+            - Disabled
         default:
             - Static
         aliases:
@@ -646,7 +648,7 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
                                  default='ReadOnly'),
             managed_disk_type=dict(type='str', choices=['Standard_LRS', 'Premium_LRS']),
             os_type=dict(type='str', choices=['Linux', 'Windows'], default='Linux'),
-            public_ip_allocation_method=dict(type='str', choices=['Dynamic', 'Static'], default='Static',
+            public_ip_allocation_method=dict(type='str', choices=['Dynamic', 'Static', 'Disabled'], default='Static',
                                              aliases=['public_ip_allocation']),
             open_ports=dict(type='list'),
             network_interface_names=dict(type='list', aliases=['network_interfaces']),
@@ -1641,8 +1643,11 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
             if not subnet_id:
                 self.fail(no_subnets_msg)
 
-        self.results['actions'].append('Created default public IP {0}'.format(self.name + '01'))
-        pip = self.create_default_pip(self.resource_group, self.location, self.name + '01', self.public_ip_allocation_method)
+        pip = None
+        if self.public_ip_allocation_method != 'Disabled':
+            self.results['actions'].append('Created default public IP {0}'.format(self.name + '01'))
+            pip_info = self.create_default_pip(self.resource_group, self.location, self.name + '01', self.public_ip_allocation_method)
+            pip = self.network_models.PublicIPAddress(id=pip_info.id, location=pip_info.location, resource_guid=pip_info.resource_guid)
 
         self.results['actions'].append('Created default security group {0}'.format(self.name + '01'))
         group = self.create_default_securitygroup(self.resource_group, self.location, self.name + '01', self.os_type,
@@ -1661,9 +1666,7 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
         parameters.network_security_group = self.network_models.NetworkSecurityGroup(id=group.id,
                                                                                      location=group.location,
                                                                                      resource_guid=group.resource_guid)
-        parameters.ip_configurations[0].public_ip_address = self.network_models.PublicIPAddress(id=pip.id,
-                                                                                                location=pip.location,
-                                                                                                resource_guid=pip.resource_guid)
+        parameters.ip_configurations[0].public_ip_address = pip
 
         self.log("Creating NIC {0}".format(network_interface_name))
         self.log(self.serialize_obj(parameters, 'NetworkInterface'), pretty_print=True)
diff --git a/test/integration/targets/azure_rm_virtualmachine/tasks/virtualmachine.yml b/test/integration/targets/azure_rm_virtualmachine/tasks/virtualmachine.yml
index c97ac67f96..775909cc37 100644
--- a/test/integration/targets/azure_rm_virtualmachine/tasks/virtualmachine.yml
+++ b/test/integration/targets/azure_rm_virtualmachine/tasks/virtualmachine.yml
@@ -222,6 +222,35 @@
 - assert:
       that: azure_publicipaddresses | length == 0
 
+- name: Create virtual machine without public ip address
+  register: output
+  azure_rm_virtualmachine:
+      resource_group: "{{ resource_group }}"
+      name: testvmnoip
+      vm_size: Standard_A0
+      admin_username: adminuser
+      admin_password: Password123!
+      short_hostname: testvm
+      os_type: Linux
+      public_ip_allocation_method: Disabled
+      availability_set: "avbs{{ resource_group | hash('md5') | truncate(7, True, '') }}"
+      image:
+        offer: UbuntuServer
+        publisher: Canonical
+        sku: 16.04-LTS
+        version: latest
+
+- assert:
+      that:
+        - not 'publicIPAddress' in output.ansible_facts.azure_vm.properties.networkProfile.networkInterfaces[0].properties.ipConfigurations[0].properties
+
+- name: Delete VM with no public ip
+  azure_rm_virtualmachine:
+      resource_group: "{{ resource_group }}"
+      name: testvmnoip
+      state: absent
+      vm_size: Standard_A0
+
 # TODO: Until we have a module to create/delete images this is the best tests
 # I can do
 - name: assert error thrown with invalid image dict