diff --git a/.vscode/settings.json b/.vscode/settings.json
deleted file mode 100644
index a7201b0..0000000
--- a/.vscode/settings.json
+++ /dev/null
@@ -1,5 +0,0 @@
-{
-	"editor.tabSize": 4,
-	"editor.useTabStops": true,
-	"editor.dragAndDrop": true
-}
\ No newline at end of file
diff --git a/README.md b/README.md
index 547f624..3e497db 100644
--- a/README.md
+++ b/README.md
@@ -45,7 +45,8 @@ The following compiler options are forced though:
 * `noEmitHelpers`: true
 * `importHelpers`: true
 * `noResolve`: false
-* `outDir`: `process.cwd()`
+* `outDir`: `process.cwd()`,
+* (`declarationDir`: `process.cwd()`) (*only if `useTsconfigDeclarationDir is false in the plugin options*)
 
 You will need to set `"moduleResolution": "node"` in `tsconfig.json` if typescript complains about missing `tslib`. See [#12](https://github.com/ezolenko/rollup-plugin-typescript2/issues/12) and [#14](https://github.com/ezolenko/rollup-plugin-typescript2/issues/14).
 
@@ -89,10 +90,15 @@ Plugin takes following options:
 * `rollupCommonJSResolveHack`: false
 
 	On windows typescript resolver favors POSIX path, while commonjs plugin (and maybe others?) uses native path as module id. This can result in `namedExports` being ignored if rollup happened to use typescript's resolution. Set to true to pass resolved module path through `resolve()` to match up with `rollup-plugin-commonjs`.
+	
+* `useTsconfigDeclarationDir`: false
+
+	If true, declaration files will be emitted in the directory given in the tsconfig. If false, the declaration files will be placed inside the destination directory given in the Rollup configuration.
 
 ### Declarations
 
 This plugin respects `declaration: true` in your `tsconfig.json` file. When set, it will emit `*.d.ts` files for your bundle. The resulting file(s) can then be used with the `types` property in your `package.json` file as described [here](https://www.typescriptlang.org/docs/handbook/declaration-files/publishing.html).
+By default, the declaration files will be located in the same directory as the generated Rollup bundle. If you want to override this behavior and instead use the declarationDir
 
 ### Watch mode
 
diff --git a/src/get-options-overrides.ts b/src/get-options-overrides.ts
index 1ae5c42..4c26ca1 100644
--- a/src/get-options-overrides.ts
+++ b/src/get-options-overrides.ts
@@ -1,11 +1,13 @@
 import {CompilerOptions, ModuleKind} from "typescript";
+import {IOptions} from "./ioptions";
 
-export function getOptionsOverrides(): CompilerOptions {
+export function getOptionsOverrides({useTsconfigDeclarationDir}: IOptions): CompilerOptions {
 	return {
 		module: ModuleKind.ES2015,
 		noEmitHelpers: true,
 		importHelpers: true,
 		noResolve: false,
 		outDir: process.cwd(),
+		...(useTsconfigDeclarationDir ? {} : {declarationDir: process.cwd()}),
 	};
 }
diff --git a/src/index.ts b/src/index.ts
index a819865..6c0de40 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -16,6 +16,7 @@ import {join, relative, dirname} from "path";
 
 // tslint:disable-next-line:no-var-requires
 const createFilter = require("rollup-pluginutils").createFilter;
+// tslint:enable-next-line:no-var-requires
 let watchMode = false;
 let round = 0;
 let targetCount = 0;
@@ -66,7 +67,7 @@ export default function typescript(options?: Partial<IOptions>)
 
 			filter = createFilter(pluginOptions.include, pluginOptions.exclude);
 
-			parsedConfig = parseTsConfig(pluginOptions.tsconfig, context);
+			parsedConfig = parseTsConfig(pluginOptions.tsconfig, context, pluginOptions);
 
 			servicesHost = new LanguageServiceHost(parsedConfig);
 
@@ -240,8 +241,7 @@ export default function typescript(options?: Partial<IOptions>)
 			const baseDeclarationDir = parsedConfig.options.outDir as string;
 			each(declarations, ({ name, text, writeByteOrderMark }) =>
 			{
-				const relativeFromBaseDeclarationDir = relative(baseDeclarationDir, name);
-				const writeToPath = join(destDirectory, relativeFromBaseDeclarationDir);
+				const writeToPath = pluginOptions.useTsconfigDeclarationDir ? name : join(destDirectory, relative(baseDeclarationDir, name));
 				sys.writeFile(writeToPath, text, writeByteOrderMark);
 			});
 		},
diff --git a/src/ioptions.ts b/src/ioptions.ts
index 8d3ef8b..0749ac8 100644
--- a/src/ioptions.ts
+++ b/src/ioptions.ts
@@ -9,4 +9,5 @@ export interface IOptions
 	abortOnError: boolean;
 	rollupCommonJSResolveHack: boolean;
 	tsconfig: string;
+	useTsconfigDeclarationDir: boolean;
 }
diff --git a/src/parse-ts-config.ts b/src/parse-ts-config.ts
index ab11c05..f7bf7f2 100644
--- a/src/parse-ts-config.ts
+++ b/src/parse-ts-config.ts
@@ -4,8 +4,9 @@ import {dirname} from "path";
 import {printDiagnostics} from "./print-diagnostics";
 import {convertDiagnostic} from "./tscache";
 import {getOptionsOverrides} from "./get-options-overrides";
+import {IOptions} from "./ioptions";
 
-export function parseTsConfig(tsconfig: string, context: IContext): ParsedCommandLine {
+export function parseTsConfig(tsconfig: string, context: IContext, pluginOptions: IOptions): ParsedCommandLine {
 	const fileName = findConfigFile(process.cwd(), sys.fileExists, tsconfig);
 
 	if (!fileName)
@@ -19,5 +20,5 @@ export function parseTsConfig(tsconfig: string, context: IContext): ParsedComman
 		throw new Error(`failed to parse ${fileName}`);
 	}
 
-	return parseJsonConfigFileContent(result.config, sys, dirname(fileName), getOptionsOverrides(), fileName);
+	return parseJsonConfigFileContent(result.config, sys, dirname(fileName), getOptionsOverrides(pluginOptions), fileName);
 }