diff --git a/app/assets/javascripts/repositories/index.js b/app/assets/javascripts/repositories/index.js
index dca06dc24..6ae014ec6 100644
--- a/app/assets/javascripts/repositories/index.js
+++ b/app/assets/javascripts/repositories/index.js
@@ -4,3 +4,54 @@
   $('.delete-repo-option').initializeModal('#delete-repo-modal');
   $('.rename-repo-option').initializeModal('#rename-repo-modal');
 })();
+
+// create new
+function init() {
+  initCreateNewModal();
+}
+
+function initCreateNewModal() {
+  var link = $("[data-action='create-new-repository']");
+  var modal = $("#create-new-modal");
+  var submitBtn = modal.find(".modal-footer [data-action='submit']");
+
+  link.on("click", function() {
+    $.ajax({
+      url: link.attr("data-url"),
+      type: "GET",
+      dataType: "json",
+      success: function (data) {
+        var modalBody = modal.find(".modal-body");
+        modalBody.html(data.html);
+
+        modalBody.find("form")
+        .on("ajax:success", function(ev2, data2, status2) {
+          // Redirect to index page
+          $(location).attr("href", data2.url);
+        })
+        .on("ajax:error", function(ev2, data2, status2) {
+          // Display errors if needed
+          $(this).renderFormErrors("repository", data2.responseJSON);
+        });
+
+        modal.modal("show");
+        modalBody.find("input[type='text']").focus();
+      },
+      error: function (error) {
+        // TODO
+      }
+    });
+  });
+
+  submitBtn.on("click", function() {
+    // Submit the form inside modal
+    $(this).closest(".modal").find(".modal-body form").submit();
+  });
+
+  modal.on("hidden.bs.modal", function(e) {
+    modal.find(".modal-body form").off("ajax:success ajax:error");
+    modal.find(".modal-body").html("");
+  });
+}
+
+init();
diff --git a/app/controllers/repositories_controller.rb b/app/controllers/repositories_controller.rb
index ec4ec8293..d048601ba 100644
--- a/app/controllers/repositories_controller.rb
+++ b/app/controllers/repositories_controller.rb
@@ -3,11 +3,51 @@ class RepositoriesController < ApplicationController
   before_action :check_view_all_permissions, only: :index
   before_action :check_edit_and_destroy_permissions, only:
     %(destroy destroy_modal rename_modal update)
+  before_action :check_create_permissions, only: [
+    :create_new_modal,
+    :create
+  ]
 
   def index
     render('repositories/index')
   end
 
+  def create_new_modal
+    @new_repository = Repository.new
+    respond_to do |format|
+      format.json {
+        render json: {
+          html: render_to_string({
+            partial: "repositories/index/create_new_modal_body.html.erb"
+          })
+        }
+      }
+    end
+  end
+
+  def create
+    @repository = Repository.new(
+      team: @team,
+      created_by: current_user
+    )
+    @repository.assign_attributes(repository_params)
+
+    respond_to do |format|
+      if @repository.save
+        flash[:success] = t("repositories.create.success_flash", name: @repository.name)
+        format.json {
+          render json: { url: team_repositories_path(@team, create_action: true) },
+            status: :ok
+        }
+      else
+        format.json {
+          render json: @repository.errors,
+            status: :unprocessable_entity
+        }
+      end
+    end
+  end
+
   def destroy_modal
     @repository = Repository.find(params[:repository_id])
     respond_to do |format|
@@ -74,6 +114,11 @@ class RepositoriesController < ApplicationController
     render_403 unless can_view_team_repositories(@team)
   end
 
+  def check_create_permissions
+    render_403 unless can_create_new_repository(@team) &&
+                      @repositories.count < Constants::REPOSITORIES_LIMIT
+  end
+
   def check_edit_and_destroy_permissions
     render_403 unless can_edit_and_destroy_repository(@repository)
   end
diff --git a/app/helpers/permission_helper.rb b/app/helpers/permission_helper.rb
index e453ed2a7..3ed492cac 100644
--- a/app/helpers/permission_helper.rb
+++ b/app/helpers/permission_helper.rb
@@ -1053,6 +1053,10 @@ module PermissionHelper
     is_member_of_team(team)
   end
 
+  def can_create_new_repository(team)
+    is_admin_of_team(team)
+  end
+
   def can_view_repositories(team)
     is_normal_user_or_admin_of_team(team)
   end
diff --git a/app/views/repositories/index.html.erb b/app/views/repositories/index.html.erb
index cc39a54e7..34bb7d88e 100644
--- a/app/views/repositories/index.html.erb
+++ b/app/views/repositories/index.html.erb
@@ -4,68 +4,80 @@
   <%= render partial: "repositories/breadcrumbs.html.erb",
              locals: { teams: @teams, current_team: current_team, type: @type } %>
 
+  <% active_repo = @repositories.find_by_id(params[:repository]) %>
+  <% active_repo = @repositories.first if !active_repo %>
+
   <!-- Nav tabs -->
-  <% if @repositories.present? %>
-    <% active_repo = @repositories.find_by_id(params[:repository]) %>
-    <% active_repo = @repositories.first if !active_repo %>
+  <ul class="nav nav-tabs nav-settings" role="tablist" id="tabs">
+    <% @repositories.each do |repo| %>
+      <li role="presentation" class="<%= 'active' if repo == active_repo %>">
+        <a href="#custom_repo_<%= repo.id %>"
+           data-toggle="tab"
+           aria-controls="custom_repo_<%= repo.id %>"
+           title="<%=repo.name%>"><%= truncate(repo.name, length: Constants::NAME_TRUNCATION_LENGTH) %></a>
+      </li>
+    <% end %>
+    <!-- Add new repository tab -->
+    <li role="presentation"
+      <% unless can_create_new_repository(current_team) &&
+                @repositories.count < Constants::REPOSITORIES_LIMIT %>
+        class="disabled"
+      <% end %>>
+      <a href='#'
+         data-url="<%= create_new_modal_team_repositories_path %>"
+        <% if can_create_new_repository(current_team) &&
+              @repositories.count < Constants::REPOSITORIES_LIMIT %>
+          data-action='create-new-repository'
+        <% end %>>
+        <span class="glyphicon glyphicon-plus"></span>
+        <span class="hidden-xs">&nbsp;<%= t('repositories.index.add_new_repository_tab') %></span>
+      </a>
+    </li>
+  </ul>
 
-    <ul class="nav nav-tabs nav-settings" role="tablist" id="tabs">
-      <% @repositories.each do |repo| %>
-        <li role="presentation" class="<%= 'active' if repo == active_repo %>">
-          <a class="repository-nav-tab"
-             href="#custom_repo_<%= repo.id %>"
-             data-toggle="tab"
-             aria-controls="custom_repo_<%= repo.id %>"
-             title="<%=repo.name%>"><%= truncate(repo.name, length: Constants::NAME_TRUNCATION_LENGTH) %></a>
-        </li>
-      <% end %>
-    </ul>
-    <!-- Tab panes -->
-    <div class="tab-content">
-      <% @repositories.each do |repo| %>
-        <div class="tab-pane tab-pane-settings <%= 'active' if repo == active_repo %>" id="custom_repo_<%= repo.id %>">
-          <!-- Tab Content -->
+  <!-- Tab panes -->
+  <div class="tab-content">
+    <% @repositories.each do |repo| %>
+      <div class="tab-pane tab-pane-settings <%= 'active' if repo == active_repo %>" id="custom_repo_<%= repo.id %>">
 
-          <div id="repository-toolbar">
-            <div class="dropdown text-right">
-              <div class="btn btn-default btn-xs"
-                   type="button"
-                   data-toggle="dropdown"
-                   aria-haspopup="true"
-                   aria-expanded="true"
-                   <%= "disabled='disabled'" if !can_edit_and_destroy_repository repo %>>
-                <span class="glyphicon glyphicon-cog"></span>
-                <span class="caret"></span>
-              </div>
-              <% if can_edit_and_destroy_repository repo %>
-                <ul class="dropdown-menu pull-right">
-                  <li class="dropdown-header">
-                    <%= t("repositories.index.options_dropdown.header") %>
-                  </li>
-                  <li>
-                    <%= link_to t('repositories.index.options_dropdown.rename'),
-                                team_repository_rename_modal_path(repository_id: repo),
-                                class: "rename-repo-option",
-                                remote: true %>
-                  </li>
-                  <li role="separator" class="divider"></li>
-                  <li>
-                    <%= link_to t('repositories.index.modal_delete.delete'),
-                                team_repository_destroy_modal_path(repository_id: repo),
-                                class: "delete-repo-option",
-                                remote: true %>
-                  </li>
-                </ul>
-              <% end %>
+        <!-- Tab Content -->
+        <div id="repository-toolbar">
+          <div class="dropdown text-right">
+            <div class="btn btn-default btn-xs"
+                 type="button"
+                 data-toggle="dropdown"
+                 aria-haspopup="true"
+                 aria-expanded="true"
+                 <%= "disabled='disabled'" if !can_edit_and_destroy_repository repo %>>
+              <span class="glyphicon glyphicon-cog"></span>
+              <span class="caret"></span>
             </div>
+            <% if can_edit_and_destroy_repository repo %>
+              <ul class="dropdown-menu pull-right">
+                <li class="dropdown-header">
+                  <%= t("repositories.index.options_dropdown.header") %>
+                </li>
+                <li>
+                  <%= link_to t('repositories.index.options_dropdown.rename'),
+                              team_repository_rename_modal_path(repository_id: repo),
+                              class: "rename-repo-option",
+                              remote: true %>
+                </li>
+                <li role="separator" class="divider"></li>
+                <li>
+                  <%= link_to t('repositories.index.modal_delete.delete'),
+                              team_repository_destroy_modal_path(repository_id: repo),
+                              class: "delete-repo-option",
+                              remote: true %>
+                </li>
+              </ul>
+            <% end %>
           </div>
-
         </div>
-      <% end %>
-    </div>
-  <% else %>
-    <p><em><%=t 'repositories.index.no_repositories' %></em></p>
-  <% end %>
+
+      </div>
+    <% end %>
+  </div>
 
 <% else %>
   <!-- If member of no teams -->
@@ -76,3 +88,4 @@
 <% end %>
 
 <%= javascript_include_tag "repositories/index", "data-turbolinks-track" => true %>
+<%= render partial: "repositories/index/create_new_modal.html.erb" %>
diff --git a/app/views/repositories/index/_create_new_modal.html.erb b/app/views/repositories/index/_create_new_modal.html.erb
new file mode 100644
index 000000000..8a243e238
--- /dev/null
+++ b/app/views/repositories/index/_create_new_modal.html.erb
@@ -0,0 +1,17 @@
+<div class="modal" id="create-new-modal" tabindex="-1" role="dialog" aria-labelledby="create-new-modal-label">
+  <div class="modal-dialog" role="document">
+    <div class="modal-content">
+      <div class="modal-header">
+        <button type="button" class="close" data-dismiss="modal" aria-label="Close"><span aria-hidden="true">&times;</span></button>
+        <h4 class="modal-title" id="create-new-modal-label">
+          <%= t("repositories.create.title") %>
+        </h4>
+      </div>
+      <div class="modal-body"></div>
+      <div class="modal-footer">
+        <button type="button" class="btn btn-primary" data-action="submit"><%= t("repositories.create.submit") %></button>
+        <button type="button" class="btn btn-default" data-dismiss="modal"><%= t("general.cancel") %></button>
+      </div>
+    </div>
+  </div>
+</div>
diff --git a/app/views/repositories/index/_create_new_modal_body.html.erb b/app/views/repositories/index/_create_new_modal_body.html.erb
new file mode 100644
index 000000000..f7eea8f87
--- /dev/null
+++ b/app/views/repositories/index/_create_new_modal_body.html.erb
@@ -0,0 +1,3 @@
+<%= bootstrap_form_for [@team, @new_repository], remote: :true do |f| %>
+  <%= f.text_field :name, label: t("repositories.create.name_label"), placeholder: t("repositories.create.name_placeholder") %>
+<% end %>
diff --git a/config/initializers/constants.rb b/config/initializers/constants.rb
index 7ad024929..798b99ee9 100644
--- a/config/initializers/constants.rb
+++ b/config/initializers/constants.rb
@@ -51,6 +51,9 @@ class Constants
   # Maximum nr. of search results for atwho (smart annotations)
   ATWHO_SEARCH_LIMIT = 5
 
+  # Maximum number of repositories allowed
+  REPOSITORIES_LIMIT = 5
+
   #=============================================================================
   # File and data memory size
   #=============================================================================
diff --git a/config/locales/en.yml b/config/locales/en.yml
index 5e1852e16..135b91687 100644
--- a/config/locales/en.yml
+++ b/config/locales/en.yml
@@ -149,10 +149,13 @@ en:
         result: "Result comment"
 
   repositories:
+    nav:
+      breadcrumbs:
+        repositories: "Repositories"
     index:
       head_title: "Repositories"
       title: "Repositories"
-      no_repositories: "No repositories"
+      add_new_repository_tab: "Create new repository"
       delete_flash: "\"%{name}\" repository was successfully deleted!"
       rename_flash: "\"%{old_name}\" repository was successfully renamed to \"%{new_name}\"!"
       no_teams:
@@ -174,9 +177,12 @@ en:
         name: "New repository name"
         name_placeholder: "My repository"
         rename: "Rename repository"
-    nav:
-      breadcrumbs:
-        repositories: "Repositories"
+    create:
+      title: "Create new repository"
+      name_label: "Repository name"
+      name_placeholder: "My repository"
+      submit: "Create repository"
+      success_flash: "Repository <strong>%{name}</strong> successfully created."
 
   comments:
     options_dropdown:
diff --git a/config/routes.rb b/config/routes.rb
index 335ff8249..ad78ac9eb 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -123,7 +123,11 @@ Rails.application.routes.draw do
         as: 'file_expired'
 
     resources :teams do
-      resources :repositories, only: %i(index destroy update) do
+      resources :repositories, only: %i(index create destroy update) do
+        collection do
+          get 'create_new_modal', to: 'repositories#create_new_modal',
+              defaults: { format: 'json' }
+        end
         get 'destroy_modal', to: 'repositories#destroy_modal',
             defaults: { format: 'json' }
         get 'rename_modal', to: 'repositories#rename_modal',