diff --git a/cloudinit/sources/DataSourceCloudSigma.py b/cloudinit/sources/DataSourceCloudSigma.py
index e734d7e5..79ced3f4 100644
--- a/cloudinit/sources/DataSourceCloudSigma.py
+++ b/cloudinit/sources/DataSourceCloudSigma.py
@@ -15,6 +15,7 @@
 #
 #    You should have received a copy of the GNU General Public License
 #    along with this program.  If not, see <http://www.gnu.org/licenses/>.
+from base64 import b64decode
 import re
 
 from cloudinit import log as logging
@@ -60,7 +61,11 @@ class DataSourceCloudSigma(sources.DataSource):
         if dsmode == "disabled" or dsmode != self.dsmode:
             return False
 
+        base64_fields = server_meta.get('base64_fields', '').split(',')
         self.userdata_raw = server_meta.get('cloudinit-user-data', "")
+        if 'cloudinit-user-data' in base64_fields:
+            self.userdata_raw = b64decode(self.userdata_raw)
+
         self.metadata = server_context
         self.ssh_public_key = server_meta['ssh_public_key']
 
diff --git a/doc/sources/cloudsigma/README.rst b/doc/sources/cloudsigma/README.rst
index 1d9160a2..6509b585 100644
--- a/doc/sources/cloudsigma/README.rst
+++ b/doc/sources/cloudsigma/README.rst
@@ -23,6 +23,10 @@ You can provide user-data to the VM using the dedicated `meta field`_ in the `se
 header could be omitted. However since this is a raw-text field you could provide any of the valid
 `config formats`_.
 
+You have the option to encode your user-data using Base64. In order to do that you have to add the
+``cloudinit-user-data`` field to the ``base64_fields``. The latter is a comma-separated field with
+all the meta fields whit base64 encoded values.
+
 If your user-data does not need an internet connection you can create a
 `meta field`_ in the `server context`_ ``cloudinit-dsmode`` and set "local" as value.
 If this field does not exist the default value is "net".
diff --git a/tests/unittests/test_datasource/test_cloudsigma.py b/tests/unittests/test_datasource/test_cloudsigma.py
index 3245aba1..adbb4afb 100644
--- a/tests/unittests/test_datasource/test_cloudsigma.py
+++ b/tests/unittests/test_datasource/test_cloudsigma.py
@@ -1,4 +1,5 @@
 # coding: utf-8
+import copy
 from unittest import TestCase
 
 from cloudinit.cs_utils import Cepko
@@ -24,7 +25,8 @@ SERVER_CONTEXT = {
 
 
 class CepkoMock(Cepko):
-    result = SERVER_CONTEXT
+    def __init__(self, mocked_context):
+        self.result = mocked_context
 
     def all(self):
         return self
@@ -33,7 +35,7 @@ class CepkoMock(Cepko):
 class DataSourceCloudSigmaTest(TestCase):
     def setUp(self):
         self.datasource = DataSourceCloudSigma.DataSourceCloudSigma("", "", "")
-        self.datasource.cepko = CepkoMock()
+        self.datasource.cepko = CepkoMock(SERVER_CONTEXT)
         self.datasource.get_data()
 
     def test_get_hostname(self):
@@ -57,3 +59,12 @@ class DataSourceCloudSigmaTest(TestCase):
     def test_user_data(self):
         self.assertEqual(self.datasource.userdata_raw,
                          SERVER_CONTEXT['meta']['cloudinit-user-data'])
+
+    def test_encoded_user_data(self):
+        encoded_context = copy.deepcopy(SERVER_CONTEXT)
+        encoded_context['meta']['base64_fields'] = 'cloudinit-user-data'
+        encoded_context['meta']['cloudinit-user-data'] = 'aGkgd29ybGQK'
+        self.datasource.cepko = CepkoMock(encoded_context)
+        self.datasource.get_data()
+
+        self.assertEqual(self.datasource.userdata_raw, b'hi world\n')