diff --git a/ext/gd/libgd/gd_gif_out.c b/ext/gd/libgd/gd_gif_out.c
index 49da75f96f9..651df90d4f8 100644
--- a/ext/gd/libgd/gd_gif_out.c
+++ b/ext/gd/libgd/gd_gif_out.c
@@ -133,7 +133,7 @@ void gdImageGifCtx(gdImagePtr im, gdIOCtxPtr out)
 	BitsPerPixel = colorstobpp(tim->colorsTotal);
 	/* All set, let's do it. */
 	GIFEncode(
-		out, tim->sx, tim->sy, interlace, 0, transparent, BitsPerPixel,
+		out, tim->sx, tim->sy, tim->interlace, 0, tim->transparent, BitsPerPixel,
 		tim->red, tim->green, tim->blue, tim);
 	if (pim) {
 		/* Destroy palette based temporary image. */
diff --git a/ext/gd/tests/bug36697.phpt b/ext/gd/tests/bug36697.phpt
new file mode 100644
index 00000000000..b257f63e255
--- /dev/null
+++ b/ext/gd/tests/bug36697.phpt
@@ -0,0 +1,31 @@
+--TEST--
+Bug #36697 (TrueColor transparency with GIF palette output).
+--SKIPIF--
+<?php 
+	if (!extension_loaded('gd')) {	
+		die("skip gd extension not available\n");
+	}
+	if (!GD_BUNDLED) {
+		die('skip external GD libraries may fail');
+	}
+?>
+--FILE--
+<?php
+$dest = dirname(__FILE__) . "/36697.gif";
+
+$im = imagecreatetruecolor(192, 36);
+$trans_color = imagecolorallocate($im, 255, 0, 0);
+$color = imagecolorallocate($im, 255, 255, 255);
+imagecolortransparent($im, $trans_color);
+imagefilledrectangle($im, 0,0, 192,36, $trans_color);
+$c = imagecolorat($im, 191,35);
+imagegif($im, $dest);
+imagedestroy($im);
+$im = imagecreatefromgif($dest);
+$c = imagecolorat($im, 191, 35);
+$colors = imagecolorsforindex($im, $c);
+echo $colors['red'] . ' ' . $colors['green'] . ' ' . $colors['blue'];
+@unlink($dest);
+?>
+--EXPECT--
+255 0 0