diff --git a/app/controllers/projects_controller.rb b/app/controllers/projects_controller.rb
index 70660053e..dc7546f82 100644
--- a/app/controllers/projects_controller.rb
+++ b/app/controllers/projects_controller.rb
@@ -213,7 +213,6 @@ class ProjectsController < ApplicationController
       next unless can_archive_project?(project)
 
       project.transaction do
-        project.project_folder = nil
         project.archive!(current_user)
         log_activity(:archive_project, project)
         counter += 1
diff --git a/app/models/project.rb b/app/models/project.rb
index 9e5d003fc..6a6e8ebd9 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -13,6 +13,7 @@ class Project < ApplicationRecord
   validates :visibility, presence: true
   validates :team, presence: true
   validate :project_folder_team, if: -> { project_folder.present? }
+  before_validation :remove_project_folder, on: :update, if: :archived_changed?
 
   belongs_to :created_by,
              foreign_key: 'created_by_id',
@@ -330,4 +331,8 @@ class Project < ApplicationRecord
 
     errors.add(:project_folder, I18n.t('activerecord.errors.models.project.attributes.project_folder.team'))
   end
+
+  def remove_project_folder
+    self.project_folder = nil if archived?
+  end
 end