diff --git a/audeer/core/io.py b/audeer/core/io.py
index b4a7efa..abcc37b 100644
--- a/audeer/core/io.py
+++ b/audeer/core/io.py
@@ -256,7 +256,7 @@ def download_url(
         'favicon.png'
 
     """  # noqa: E501
-    destination = safe_path(destination)
+    destination = safe_path(destination, follow_symlink=False)
     if os.path.isdir(destination):
         destination = os.path.join(destination, os.path.basename(url))
     if os.path.exists(destination) and not force_download:
diff --git a/tests/test_io.py b/tests/test_io.py
index 072eb28..761baab 100644
--- a/tests/test_io.py
+++ b/tests/test_io.py
@@ -424,12 +424,51 @@ def test_common_directory(dirs, expected):
     assert common == expected
 
 
-def test_download_url(tmpdir):
+@pytest.mark.parametrize(
+    "destination, symlink",
+    [
+        ("folder/", False),
+        ("folder/", True),
+        ("favicon.png", False),
+        ("favicon.png", True),
+    ],
+)
+def test_download_url(tmpdir, destination, symlink):
     url = "https://audeering.github.io/audeer/_static/favicon.png"
-    audeer.download_url(url, tmpdir)
-    audeer.download_url(url, tmpdir)
-    dst = audeer.download_url(url, tmpdir, force_download=True)
-    assert dst == os.path.join(tmpdir, os.path.basename(url))
+    file = os.path.basename(url)
+
+    if destination.endswith("/"):  # folder
+        path = audeer.mkdir(tmpdir, destination)
+        link = os.path.join(tmpdir, "link")
+    else:
+        path = os.path.join(tmpdir, file)
+        link = os.path.join(tmpdir, "link.png")
+
+    if symlink:
+        os.symlink(path, link)
+        dst = link
+    else:
+        dst = path
+
+    # 1. Download
+    # 2. Download (just return dst link)
+    # 3. Download with overwrite
+    #
+    # If destination is a symlink,
+    # a symlink should be returned
+    for n in range(3):
+        force_download = False
+        if n == 2:
+            force_download = True
+        downloaded_file = audeer.download_url(url, dst, force_download=force_download)
+        if destination.endswith("/"):
+            assert downloaded_file == os.path.join(dst, file)
+            if symlink:
+                assert audeer.path(downloaded_file) == os.path.join(path, file)
+        else:
+            assert downloaded_file == dst
+            if symlink:
+                assert audeer.path(downloaded_file) == path
 
 
 @pytest.mark.parametrize(