diff --git a/move2kube/m2k-func/src/main/java/dev/parodos/SaveTransformationFunction.java b/move2kube/m2k-func/src/main/java/dev/parodos/SaveTransformationFunction.java
index 2e76cdad..3853f5df 100644
--- a/move2kube/m2k-func/src/main/java/dev/parodos/SaveTransformationFunction.java
+++ b/move2kube/m2k-func/src/main/java/dev/parodos/SaveTransformationFunction.java
@@ -60,6 +60,15 @@ public CloudEvent<EventGenerator.EventPOJO> saveTransformation(FunInput input) {
           input.transformId, input.workspaceId, input.projectId, input.gitRepo, e), SOURCE);
     }
 
+    try {
+      cleanTransformationOutputFolder(transformationOutputPath);
+    } catch (IOException e) {
+      log.error("Error while cleaning extracted transformation output", e);
+      return EventGenerator.createErrorEvent(input.workflowCallerId, String.format("Cannot clean extracted transformation output of transformation %s" +
+              " in workspace %s for project %s for repo %s; error: %s",
+          input.transformId, input.workspaceId, input.projectId, input.gitRepo, e), SOURCE);
+    }
+
     return pushTransformationToGitRepo(input, transformationOutputPath);
   }
 
@@ -114,6 +123,20 @@ public void moveTransformationOutputToBranchDirectory(Path transformationOutput,
         gitDirectory.resolve("Readme.md").toFile());
   }
 
+  private static void cleanTransformationOutputFolder(Path transformationOutput) throws IOException {
+    try (var files = Files.walk(transformationOutput)) {
+      files.forEach(path -> {
+        if (path.toAbsolutePath().toString().contains(".git") && path.toFile().isDirectory()) {
+          try {
+            FileUtils.deleteDirectory(path.toFile());
+          } catch (IOException e) {
+            log.error("Error while deleting .git directory {} of transformation output", path, e);
+          }
+        }
+      });
+    }
+  }
+
   private static void cleanCurrentGitFolder(Path gitDirectory) throws IOException {
     try (var files = Files.walk(gitDirectory, 1)) {
       files.forEach(path -> {
diff --git a/move2kube/m2k-func/src/test/resources/SaveTransformationFunctionTest/references/expected_output.zip b/move2kube/m2k-func/src/test/resources/SaveTransformationFunctionTest/references/expected_output.zip
index 70002623..08c77e3f 100644
Binary files a/move2kube/m2k-func/src/test/resources/SaveTransformationFunctionTest/references/expected_output.zip and b/move2kube/m2k-func/src/test/resources/SaveTransformationFunctionTest/references/expected_output.zip differ
diff --git a/move2kube/m2k-func/src/test/resources/SaveTransformationFunctionTest/references/transformation_output.zip b/move2kube/m2k-func/src/test/resources/SaveTransformationFunctionTest/references/transformation_output.zip
index be45603a..91c8ba92 100644
Binary files a/move2kube/m2k-func/src/test/resources/SaveTransformationFunctionTest/references/transformation_output.zip and b/move2kube/m2k-func/src/test/resources/SaveTransformationFunctionTest/references/transformation_output.zip differ