diff --git a/lightningd/closing_control.c b/lightningd/closing_control.c
index 374d4f72d..349959fe7 100644
--- a/lightningd/closing_control.c
+++ b/lightningd/closing_control.c
@@ -49,12 +49,10 @@ static struct amount_sat calc_tx_fee(struct amount_sat sat_in,
 	return fee;
 }
 
-/* Is this better than the last tx we were holding?  This can happen
- * even without closingd misbehaving, if we have multiple,
- * interrupted, rounds of negotiation. */
-static bool better_closing_fee(struct lightningd *ld,
-			       struct channel *channel,
-			       const struct bitcoin_tx *tx)
+/* Assess whether a proposed closing fee is acceptable. */
+static bool closing_fee_is_acceptable(struct lightningd *ld,
+				      struct channel *channel,
+				      const struct bitcoin_tx *tx)
 {
 	struct amount_sat fee, last_fee, min_fee;
 	u64 weight;
@@ -85,15 +83,10 @@ static bool better_closing_fee(struct lightningd *ld,
 		return false;
 	}
 
-	/* In case of a tie, prefer new over old: this covers the preference
+	/* Prefer new over old: this covers the preference
 	 * for a mutual close over a unilateral one. */
 
-	/* If we don't know the feerate, prefer higher fee. */
-	if (feerate_unknown)
-		return amount_sat_greater_eq(fee, last_fee);
-
-	/* Otherwise prefer lower fee. */
-	return amount_sat_less_eq(fee, last_fee);
+	return true;
 }
 
 static void peer_received_closing_signature(struct channel *channel,
@@ -112,7 +105,7 @@ static void peer_received_closing_signature(struct channel *channel,
 	tx->chainparams = chainparams;
 
 	/* FIXME: Make sure signature is correct! */
-	if (better_closing_fee(ld, channel, tx)) {
+	if (closing_fee_is_acceptable(ld, channel, tx)) {
 		channel_set_last_tx(channel, tx, &sig, TX_CHANNEL_CLOSE);
 		wallet_channel_save(ld->wallet, channel);
 	}
diff --git a/tests/test_closing.py b/tests/test_closing.py
index 88c7b9738..4547225a5 100644
--- a/tests/test_closing.py
+++ b/tests/test_closing.py
@@ -393,6 +393,87 @@ def test_deprecated_closing_compat(node_factory, bitcoind, chainparams):
         l1.rpc.call('check', ['close', nodeid, "Given enough eyeballs, all bugs are shallow."])
 
 
+def closing_fee(node_factory, bitcoind, chainparams, opts):
+    rate = opts['funder_feerate_per_kw']
+    funder = node_factory.get_node(feerates=(rate, rate, rate))
+
+    rate = opts['fundee_feerate_per_kw']
+    fundee = node_factory.get_node(feerates=(rate, rate, rate))
+
+    funder_id = funder.info['id']
+    fundee_id = fundee.info['id']
+
+    fund_amount = 10**6
+
+    funder.rpc.connect(fundee_id, 'localhost', fundee.port)
+    funder.fund_channel(fundee, fund_amount)
+
+    assert bitcoind.rpc.getmempoolinfo()['size'] == 0
+
+    if opts['close_initiated_by'] == 'funder':
+        funder.rpc.close(peer_id=fundee_id)
+    else:
+        assert opts['close_initiated_by'] == 'fundee'
+        fundee.rpc.close(peer_id=funder_id)
+
+    # Get the closing transaction from the bitcoind mempool and get its fee
+
+    mempool = None
+    mempool_tx_ids = None
+
+    def get_mempool_when_size_1():
+        nonlocal mempool, mempool_tx_ids
+        mempool = bitcoind.rpc.getrawmempool(True)
+        mempool_tx_ids = list(mempool.keys())
+        return len(mempool_tx_ids) == 1
+
+    wait_for(get_mempool_when_size_1)
+
+    close_tx_id = mempool_tx_ids[0]
+    fee_mempool = round(mempool[close_tx_id]['fee'] * 10**8)
+
+    # Get the proclaimed closing fee from the two nodes' statuses
+
+    status_agreed_regex = re.compile("agreed on a closing fee of ([0-9]+) satoshi")
+
+    # [fee_from_funder_status, fee_from_fundee_status]
+    fees_from_status = [None, None]
+
+    def get_fee_from_status(node, peer_id, i):
+        nonlocal fees_from_status
+        status = only_one(only_one(node.rpc.listpeers(peer_id)['peers'][0]['channels'])['status'])
+        m = status_agreed_regex.search(status)
+        if not m:
+            return False
+        fees_from_status[i] = int(m.group(1))
+        return True
+
+    wait_for(lambda: get_fee_from_status(funder, fundee_id, 0))
+    wait_for(lambda: get_fee_from_status(fundee, funder_id, 1))
+
+    assert fee_mempool == fees_from_status[0]
+    assert fee_mempool == fees_from_status[1]
+    assert fee_mempool == opts['expected_close_fee']
+
+
+def test_closing_fee(node_factory, bitcoind, chainparams):
+    """Test that the closing negotiation strategy works"""
+    # feerate 27625 -> closing fee negotiation starts at 20000
+    # feerate 29006 -> closing fee negotiation starts at 21000
+
+    opts = {
+        'funder_feerate_per_kw': 29006,
+        'fundee_feerate_per_kw': 27625,
+        'close_initiated_by': 'funder',
+        'expected_close_fee': 20333
+    }
+
+    closing_fee(node_factory, bitcoind, chainparams, opts)
+
+    opts['close_initiated_by'] = 'fundee'
+    closing_fee(node_factory, bitcoind, chainparams, opts)
+
+
 @unittest.skipIf(not DEVELOPER, "needs DEVELOPER=1")
 def test_penalty_inhtlc(node_factory, bitcoind, executor, chainparams):
     """Test penalty transaction with an incoming HTLC"""