diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -539,6 +539,9 @@ def bookmark(ui, repo, mark=None, rev=No
         if not mark:
             raise util.Abort(_("bookmark names cannot consist entirely of "
                                "whitespace"))
+        if inactive and mark == repo._bookmarkcurrent:
+            bookmarks.setcurrent(repo, None)
+            return
         if mark in marks and not force:
             raise util.Abort(_("bookmark '%s' already exists "
                                "(use -f to force)") % mark)
diff --git a/tests/test-bookmarks-current.t b/tests/test-bookmarks-current.t
--- a/tests/test-bookmarks-current.t
+++ b/tests/test-bookmarks-current.t
@@ -106,3 +106,22 @@ set bookmark Z using -i
   $ hg bookmarks
    * Y                         0:719295282060
      Z                         0:719295282060
+
+deactivate current bookmark using -i
+
+  $ hg bookmark -i Y
+  $ hg bookmarks
+     Y                         0:719295282060
+     Z                         0:719295282060
+
+  $ hg up -q Y
+  $ hg bookmarks
+   * Y                         0:719295282060
+     Z                         0:719295282060
+
+deactivate current bookmark while renaming
+
+  $ hg bookmark -i -m Y X
+  $ hg bookmarks
+     X                         0:719295282060
+     Z                         0:719295282060
diff --git a/tests/test-debugcomplete.t b/tests/test-debugcomplete.t
--- a/tests/test-debugcomplete.t
+++ b/tests/test-debugcomplete.t
@@ -205,7 +205,7 @@ Show all commands + options
   archive: no-decode, prefix, rev, type, subrepos, include, exclude
   backout: merge, parent, tool, rev, include, exclude, message, logfile, date, user
   bisect: reset, good, bad, skip, extend, command, noupdate
-  bookmarks: force, rev, delete, rename
+  bookmarks: force, rev, delete, rename, inactive
   branch: force, clean
   branches: active, closed
   bundle: force, rev, branch, base, all, type, ssh, remotecmd, insecure