diff --git a/spring-cloud-app-broker-deployer-cloudfoundry/src/main/java/org/springframework/cloud/appbroker/deployer/cloudfoundry/CloudFoundryAppDeployer.java b/spring-cloud-app-broker-deployer-cloudfoundry/src/main/java/org/springframework/cloud/appbroker/deployer/cloudfoundry/CloudFoundryAppDeployer.java
index 01540d9..b3241fa 100644
--- a/spring-cloud-app-broker-deployer-cloudfoundry/src/main/java/org/springframework/cloud/appbroker/deployer/cloudfoundry/CloudFoundryAppDeployer.java
+++ b/spring-cloud-app-broker-deployer-cloudfoundry/src/main/java/org/springframework/cloud/appbroker/deployer/cloudfoundry/CloudFoundryAppDeployer.java
@@ -191,8 +191,6 @@ public class CloudFoundryAppDeployer implements AppDeployer, ResourceLoaderAware
 	@Override
 	public Mono<UpdateApplicationResponse> update(UpdateApplicationRequest request) {
 		final String name = request.getName();
-		final Map<String, Object> environmentVariables =
-			getApplicationEnvironment(request.getProperties(), request.getEnvironment(), request.getServiceInstanceId());
 
 		return operationsUtils.getOperations(request.getProperties())
 			.flatMap(cfOperations -> cfOperations.applications()
@@ -201,9 +199,6 @@ public class CloudFoundryAppDeployer implements AppDeployer, ResourceLoaderAware
 				.doOnSuccess(response -> logger.info("Success getting application {}", name))
 				.doOnError(e -> logger.warn(String.format("Error getting application %s: %s", name, e.getMessage())))
 				.map(ApplicationDetail::getId)
-				.flatMap(applicationId ->
-					updateApplicationEnvironment(applicationId, environmentVariables, request.getProperties()).thenReturn(applicationId)
-				)
 				.flatMap(applicationId -> associateHostName(applicationId, request.getProperties()))
 			 .flatMap(applicationId -> Mono.zip(Mono.just(applicationId),
 					upgradeApplication(request, applicationId)))
@@ -398,7 +393,11 @@ public class CloudFoundryAppDeployer implements AppDeployer, ResourceLoaderAware
 					.flatMap(packageId -> waitForPackageReady(packageId)
 							.map(Package::getId));
 		}
-		return getPackageForApplication(applicationId);
+
+		final Map<String, Object> environmentVariables =
+				getApplicationEnvironment(request.getProperties(), request.getEnvironment(), request.getServiceInstanceId());
+		return updateApplicationEnvironment(applicationId, environmentVariables, request.getProperties())
+				.flatMap(a -> getPackageForApplication(applicationId));
 	}
 
 	private Mono<String> getPackageForApplication(String applicationId) {
diff --git a/spring-cloud-app-broker-deployer-cloudfoundry/src/test/java/org/springframework/cloud/appbroker/deployer/cloudfoundry/CloudFoundryAppDeployerUpdateApplicationTest.java b/spring-cloud-app-broker-deployer-cloudfoundry/src/test/java/org/springframework/cloud/appbroker/deployer/cloudfoundry/CloudFoundryAppDeployerUpdateApplicationTest.java
index bcaa76f..9979eaf 100644
--- a/spring-cloud-app-broker-deployer-cloudfoundry/src/test/java/org/springframework/cloud/appbroker/deployer/cloudfoundry/CloudFoundryAppDeployerUpdateApplicationTest.java
+++ b/spring-cloud-app-broker-deployer-cloudfoundry/src/test/java/org/springframework/cloud/appbroker/deployer/cloudfoundry/CloudFoundryAppDeployerUpdateApplicationTest.java
@@ -289,12 +289,6 @@ class CloudFoundryAppDeployerUpdateApplicationTest {
 
 	@Test
 	void updateAppWithUpgrade() {
-		ArgumentCaptor<org.cloudfoundry.client.v2.applications.UpdateApplicationRequest> updateApplicationRequestCaptor =
-				ArgumentCaptor.forClass(org.cloudfoundry.client.v2.applications.UpdateApplicationRequest.class);
-
-		when(applicationsV2.update(updateApplicationRequestCaptor.capture()))
-				.thenReturn(Mono.just(UpdateApplicationResponse.builder().build()));
-
 		Map<String, String> properties = new HashMap<>();
 		properties.put("upgrade", "true");
 
@@ -309,6 +303,8 @@ class CloudFoundryAppDeployerUpdateApplicationTest {
 		StepVerifier.create(appDeployer.update(request))
 					.assertNext(response -> assertThat(response.getName()).isEqualTo(APP_NAME))
 					.verifyComplete();
+
+		verifyZeroInteractions(applicationsV2);
 	}
 
 	@Test
diff --git a/spring-cloud-app-broker-integration-tests/src/test/java/org.springframework.cloud.appbroker/integration/fixtures/CloudControllerStubFixture.java b/spring-cloud-app-broker-integration-tests/src/test/java/org.springframework.cloud.appbroker/integration/fixtures/CloudControllerStubFixture.java
index 063f019..882596a 100644
--- a/spring-cloud-app-broker-integration-tests/src/test/java/org.springframework.cloud.appbroker/integration/fixtures/CloudControllerStubFixture.java
+++ b/spring-cloud-app-broker-integration-tests/src/test/java/org.springframework.cloud.appbroker/integration/fixtures/CloudControllerStubFixture.java
@@ -217,7 +217,6 @@ public class CloudControllerStubFixture extends WiremockStubFixture {
 	}
 
 	public void stubUpdateAppWithUpgrade(final String appName) {
-		stubUpdateEnvironment(appName);
 		stubCreatePackage(appName);
 		stubCreateBuild(appName);
 		stubCreateDeployment(appName);