diff --git a/bin/ansible-playbook b/bin/ansible-playbook
index 6390bcba83..af69ed9386 100755
--- a/bin/ansible-playbook
+++ b/bin/ansible-playbook
@@ -298,7 +298,7 @@ def main(args):
 
             retries = failed_hosts + unreachable_hosts
 
-            if len(retries) > 0:
+            if C.RETRY_FILES_ENABLED and len(retries) > 0:
                 filename = pb.generate_retry_inventory(retries)
                 if filename:
                     display("           to retry, use: --limit @%s\n" % filename)
diff --git a/lib/ansible/constants.py b/lib/ansible/constants.py
index 01b33ea94c..eda5ca1a91 100644
--- a/lib/ansible/constants.py
+++ b/lib/ansible/constants.py
@@ -161,6 +161,9 @@ DEFAULT_CALLABLE_WHITELIST     = get_config(p, DEFAULTS, 'callable_whitelist', '
 COMMAND_WARNINGS               = get_config(p, DEFAULTS, 'command_warnings', 'ANSIBLE_COMMAND_WARNINGS', False, boolean=True)
 DEFAULT_LOAD_CALLBACK_PLUGINS  = get_config(p, DEFAULTS, 'bin_ansible_callbacks', 'ANSIBLE_LOAD_CALLBACK_PLUGINS', False, boolean=True)
 
+RETRY_FILES_ENABLED            = get_config(p, DEFAULTS, 'retry_files_enabled', 'ANSIBLE_RETRY_FILES_ENABLED', True, boolean=True)
+RETRY_FILES_SAVE_PATH          = get_config(p, DEFAULTS, 'retry_files_save_path', 'ANSIBLE_RETRY_FILES_SAVE_PATH', '~/.ansible-retry')
+
 # CONNECTION RELATED
 ANSIBLE_SSH_ARGS               = get_config(p, 'ssh_connection', 'ssh_args', 'ANSIBLE_SSH_ARGS', None)
 ANSIBLE_SSH_CONTROL_PATH       = get_config(p, 'ssh_connection', 'control_path', 'ANSIBLE_SSH_CONTROL_PATH', "%(directory)s/ansible-ssh-%%h-%%p-%%r")
diff --git a/lib/ansible/playbook/__init__.py b/lib/ansible/playbook/__init__.py
index d3c0aa5300..7f4fd8cb1f 100644
--- a/lib/ansible/playbook/__init__.py
+++ b/lib/ansible/playbook/__init__.py
@@ -643,19 +643,28 @@ class PlayBook(object):
         buf = StringIO.StringIO()
         for x in replay_hosts:
             buf.write("%s\n" % x)
-        basedir = self.inventory.basedir()
+        basedir = C.shell_expand_path(C.RETRY_FILES_SAVE_PATH)
         filename = "%s.retry" % os.path.basename(self.filename)
         filename = filename.replace(".yml","")
-        filename = os.path.join(os.path.expandvars('$HOME/'), filename)
+        filename = os.path.join(basedir, filename)
 
         try:
+            if not os.path.exists(basedir):
+                os.makedirs(basedir)
+
             fd = open(filename, 'w')
             fd.write(buf.getvalue())
             fd.close()
-            return filename
         except:
-            pass
-        return None
+            ansible.callbacks.display(
+                "\nERROR: could not create retry file. Check the value of \n"
+                + "the configuration variable 'retry_files_save_path' or set \n"
+                + "'retry_files_enabled' to False to avoid this message.\n",
+                color='red'
+            )
+            return None
+
+        return filename
 
     # *****************************************************