diff --git a/vp9/decoder/vp9_decodframe.c b/vp9/decoder/vp9_decodframe.c
index 2e233c3b728ab801f9d6549242fcf2528493a187..b200e6ccceb43bfd1098dfed3bb9988b3f24a43b 100644
--- a/vp9/decoder/vp9_decodframe.c
+++ b/vp9/decoder/vp9_decodframe.c
@@ -989,7 +989,14 @@ int vp9_decode_frame(VP9D_COMP *pbi, const uint8_t **p_data_end) {
   pc->clamp_type = (CLAMP_TYPE)vp9_read_bit(&header_bc);
   pc->error_resilient_mode = vp9_read_bit(&header_bc);
 
-  xd->lossless = vp9_read_bit(&header_bc);
+  setup_loopfilter(pc, xd, &header_bc);
+
+  setup_quantization(pbi, &header_bc);
+
+  xd->lossless = pc->base_qindex == 0 &&
+                 pc->y_dc_delta_q == 0 &&
+                 pc->uv_dc_delta_q == 0 &&
+                 pc->uv_ac_delta_q == 0;
   if (xd->lossless) {
     xd->inv_txm4x4_1      = vp9_short_iwalsh4x4_1;
     xd->inv_txm4x4        = vp9_short_iwalsh4x4;
@@ -1004,10 +1011,6 @@ int vp9_decode_frame(VP9D_COMP *pbi, const uint8_t **p_data_end) {
     xd->itxm_add_uv_block = vp9_idct_add_uv_block;
   }
 
-  setup_loopfilter(pc, xd, &header_bc);
-
-  setup_quantization(pbi, &header_bc);
-
   // Determine if the golden frame or ARF buffer should be updated and how.
   // For all non key frames the GF and ARF refresh flags and sign bias
   // flags must be set explicitly.
diff --git a/vp9/encoder/vp9_bitstream.c b/vp9/encoder/vp9_bitstream.c
index 39854513606e9eda8a9025907a3ff0ca0b7aeae3..3c234afd5e3b4688e7feaafed72c7d88691dcbc4 100644
--- a/vp9/encoder/vp9_bitstream.c
+++ b/vp9/encoder/vp9_bitstream.c
@@ -1566,9 +1566,6 @@ void vp9_pack_bitstream(VP9_COMP *cpi, uint8_t *dest, unsigned long *size) {
   // error resilient mode
   vp9_write_bit(&header_bc, pc->error_resilient_mode);
 
-  // lossless mode: note this needs to be before loopfilter
-  vp9_write_bit(&header_bc, cpi->mb.e_mbd.lossless);
-
   encode_loopfilter(pc, xd, &header_bc);
 
   encode_quantization(pc, &header_bc);
diff --git a/vp9/encoder/vp9_encodeframe.c b/vp9/encoder/vp9_encodeframe.c
index 954eefae9cccf918553e790b823703035cd4ad41..69ab1475c1fc2569dde2a8646e9821d68f4a8653 100644
--- a/vp9/encoder/vp9_encodeframe.c
+++ b/vp9/encoder/vp9_encodeframe.c
@@ -1269,10 +1269,10 @@ static void encode_frame_internal(VP9_COMP *cpi) {
   vp9_zero(cpi->coef_counts_32x32);
   vp9_zero(cm->fc.eob_branch_counts);
 
-  cpi->mb.e_mbd.lossless = (cm->base_qindex == 0 &&
-                            cm->y_dc_delta_q == 0 &&
-                            cm->uv_dc_delta_q == 0 &&
-                            cm->uv_ac_delta_q == 0);
+  cpi->mb.e_mbd.lossless = cm->base_qindex == 0 &&
+                           cm->y_dc_delta_q == 0 &&
+                           cm->uv_dc_delta_q == 0 &&
+                           cm->uv_ac_delta_q == 0;
   switch_lossless_mode(cpi, cpi->mb.e_mbd.lossless);
 
   vp9_frame_init_quantizer(cpi);