diff --git a/lib/features/modeling/behavior/LabelBehavior.js b/lib/features/modeling/behavior/LabelBehavior.js
index a94c9fdb..be11c09b 100644
--- a/lib/features/modeling/behavior/LabelBehavior.js
+++ b/lib/features/modeling/behavior/LabelBehavior.js
@@ -4,7 +4,9 @@ var assign = require('lodash/object/assign'),
     inherits = require('inherits');
 
 var LabelUtil = require('../../../util/LabelUtil'),
-    is = require('../../../util/ModelUtil').is;
+    ModelUtil = require('../../../util/ModelUtil'),
+    is = ModelUtil.is,
+    getBusinessObject = ModelUtil.getBusinessObject;
 
 var hasExternalLabel = LabelUtil.hasExternalLabel,
     getExternalLabelMid = LabelUtil.getExternalLabelMid;
@@ -68,6 +70,19 @@ function LabelSupport(eventBus, modeling, bpmnFactory) {
     }
   });
 
+  this.postExecute([ 'shape.replace' ], function(e) {
+    var context = e.context,
+        newShape = context.newShape,
+        oldShape = context.oldShape;
+
+    var businessObject = getBusinessObject(newShape);
+
+    if (businessObject && hasExternalLabel(businessObject)) {
+      newShape.label.x = oldShape.label.x;
+      newShape.label.y = oldShape.label.y;
+    }
+  });
+
   // update di information on label creation
   this.executed([ 'label.create' ], function(e) {
 
diff --git a/test/spec/features/replace/BpmnReplaceSpec.js b/test/spec/features/replace/BpmnReplaceSpec.js
index c83e2283..6e0c2f43 100644
--- a/test/spec/features/replace/BpmnReplaceSpec.js
+++ b/test/spec/features/replace/BpmnReplaceSpec.js
@@ -247,6 +247,25 @@ describe('features/replace - bpmn replace', function() {
       expect(newElement.y).to.equal(task.y);
     }));
 
+    it('should keep label position', inject(function (elementRegistry, bpmnReplace, modeling) {
+
+      // given
+      var exclusiveGateway = elementRegistry.get('ExclusiveGateway_1');
+      var label = elementRegistry.get('ExclusiveGateway_1_label');
+
+      var newElementData =  {
+        type: 'bpmn:InclusiveGateway'
+      };
+
+      // when
+      var newElement = bpmnReplace.replaceElement(exclusiveGateway, newElementData);
+
+      // then
+      expect(newElement.label.x).to.equal(label.x);
+      expect(newElement.label.y).to.equal(label.y);
+
+    }));
+
   });