diff --git a/integrations/api_repo_test.go b/integrations/api_repo_test.go
index 1aa45984e..7cabd51ad 100644
--- a/integrations/api_repo_test.go
+++ b/integrations/api_repo_test.go
@@ -445,7 +445,7 @@ func TestAPIRepoTransfer(t *testing.T) {
 		expectedStatus int
 	}{
 		{ctxUserID: 1, newOwner: "user2", teams: nil, expectedStatus: http.StatusAccepted},
-		{ctxUserID: 2, newOwner: "user1", teams: nil, expectedStatus: http.StatusAccepted},
+		{ctxUserID: 2, newOwner: "user1", teams: nil, expectedStatus: http.StatusForbidden},
 		{ctxUserID: 2, newOwner: "user6", teams: nil, expectedStatus: http.StatusForbidden},
 		{ctxUserID: 1, newOwner: "user2", teams: &[]int64{2}, expectedStatus: http.StatusUnprocessableEntity},
 		{ctxUserID: 1, newOwner: "user3", teams: &[]int64{5}, expectedStatus: http.StatusForbidden},
diff --git a/routers/api/v1/repo/transfer.go b/routers/api/v1/repo/transfer.go
index b1271b772..b52f16f90 100644
--- a/routers/api/v1/repo/transfer.go
+++ b/routers/api/v1/repo/transfer.go
@@ -93,7 +93,12 @@ func Transfer(ctx *context.APIContext, opts api.TransferRepoOption) {
 		}
 	}
 
-	if err = repo_service.TransferOwnership(ctx.User, newOwner, ctx.Repo.Repository, teams); err != nil {
+	if err = repo_service.StartRepositoryTransfer(ctx.User, newOwner, ctx.Repo.Repository, teams); err != nil {
+		if models.IsErrCancelled(err) {
+			ctx.Error(http.StatusForbidden, "transfer", "user has no right to create repo for new owner")
+			return
+		}
+
 		ctx.InternalServerError(err)
 		return
 	}
diff --git a/routers/repo/setting.go b/routers/repo/setting.go
index e4f8adc38..e722cd8c2 100644
--- a/routers/repo/setting.go
+++ b/routers/repo/setting.go
@@ -475,9 +475,12 @@ func SettingsPost(ctx *context.Context, form auth.RepoSettingForm) {
 			ctx.Repo.GitRepo.Close()
 			ctx.Repo.GitRepo = nil
 		}
-		if err = repo_service.TransferOwnership(ctx.User, newOwner, repo, nil); err != nil {
+		if err = repo_service.StartRepositoryTransfer(ctx.User, newOwner, repo, nil); err != nil {
 			if models.IsErrRepoAlreadyExist(err) {
 				ctx.RenderWithErr(ctx.Tr("repo.settings.new_owner_has_same_repo"), tplSettingsOptions, nil)
+			} else if models.IsErrCancelled(err) {
+				// this err msg is not translated, since it was introduced in a backport
+				ctx.RenderWithErr("user has no right to create repo for new owner", tplSettingsOptions, nil)
 			} else {
 				ctx.ServerError("TransferOwnership", err)
 			}
diff --git a/services/repository/transfer.go b/services/repository/transfer.go
index d34c812b8..a80f8635b 100644
--- a/services/repository/transfer.go
+++ b/services/repository/transfer.go
@@ -72,3 +72,31 @@ func ChangeRepositoryName(doer *models.User, repo *models.Repository, newRepoNam
 
 	return nil
 }
+
+// StartRepositoryTransfer transfer a repo from one owner to a new one.
+// it make repository into pending transfer state, if doer can not create repo for new owner.
+func StartRepositoryTransfer(doer, newOwner *models.User, repo *models.Repository, teams []*models.Team) error {
+	if repo.Status != models.RepositoryReady {
+		return fmt.Errorf("repository is not ready for transfer")
+	}
+
+	// Admin is always allowed to transfer
+	if doer.IsAdmin {
+		return TransferOwnership(doer, newOwner, repo, teams)
+	}
+
+	// If new owner is an org and user can create repos he can transfer directly too
+	if newOwner.IsOrganization() {
+		allowed, err := models.CanCreateOrgRepo(newOwner.ID, doer.ID)
+		if err != nil {
+			return err
+		}
+		if allowed {
+			return TransferOwnership(doer, newOwner, repo, teams)
+		}
+	}
+
+	// Block Transfer, new feature will come in v1.14.0
+	// https://github.com/go-gitea/gitea/pull/14792
+	return models.ErrCancelled{}
+}