diff --git a/connection/ssh.py b/connection/ssh.py
index f051e895..95b4512c 100644
--- a/connection/ssh.py
+++ b/connection/ssh.py
@@ -24,8 +24,8 @@ DOCUMENTATION = '''
     options:
       container_name:
           description: Hostname of a container
-          default: inventory_hostname
           vars:
+               - name: inventory_hostname
                - name: container_name
       container_tech:
           description: Container technology used by a container host
@@ -333,7 +333,9 @@ class Connection(SSH.Connection):
         super(Connection, self).set_options(task_keys=None, var_options=var_options, direct=direct)
 
         self.chroot_path = self.get_option('chroot_path')
-        self.container_name = self.get_option('container_name')
+        if var_options and \
+           self.get_option('container_name') == var_options.get('inventory_hostname'):
+               self.container_name = self.get_option('container_name')
         self.physical_host = self.get_option('physical_host')
         self.container_tech = self.get_option('container_tech')
 
diff --git a/tests/group_vars/all_containers.yml b/tests/group_vars/all_containers.yml
index 4f263c67..c385c153 100644
--- a/tests/group_vars/all_containers.yml
+++ b/tests/group_vars/all_containers.yml
@@ -29,3 +29,6 @@ container_networks:
 properties: {}
 
 physical_host: localhost
+
+openssh_server_package: "{{ (ansible_pkg_mgr == 'zypper') | ternary('openssh', 'openssh-server') }}"
+openssh_server_service: "{{ (ansible_os_family == 'Debian') | ternary('ssh', 'sshd') }}"
diff --git a/tests/test-connection-plugin.yml b/tests/test-connection-plugin.yml
index 09dbe7ff..5a7cabdc 100644
--- a/tests/test-connection-plugin.yml
+++ b/tests/test-connection-plugin.yml
@@ -99,3 +99,34 @@
       changed_when: false
       failed_when:
         - whoami_output.stdout != 'testing'
+
+# Test for I69f2eed35859bdc149e5ed21441eab7c8a8352cf
+- name: Reinstall openssh-server for delegation to unknown inventory host
+  hosts: container3
+  tasks:
+    - name: Uninstall OpenSSH server
+      package:
+        name: "{{ openssh_server_package }}"
+        state: absent
+    - name: Install OpenSSH server
+      package:
+        name: "{{ openssh_server_package }}"
+        state: present
+    - name: Start OpenSSH server
+      systemd:
+        name: "{{ openssh_server_service }}"
+        enabled: yes
+        masked: no
+        daemon_reload: yes
+        state: restarted
+
+- name: Test delegation to host not in inventory
+  hosts: container1
+  remote_user: root
+  tasks:
+    - name: Test container delegation without using inventory name
+      command: cat /etc/hostname
+      delegate_to: 10.100.100.4
+      register: delegated
+      failed_when: delegated.stdout != 'container3'
+      changed_when: false