diff --git a/jedi/api/refactoring/extract.py b/jedi/api/refactoring/extract.py
index f9e2397b..6a7ec7ba 100644
--- a/jedi/api/refactoring/extract.py
+++ b/jedi/api/refactoring/extract.py
@@ -210,7 +210,7 @@ def extract_function(inference_state, path, module_context, name, pos, until_pos
     is_expression, _ = _is_expression_with_error(nodes)
     context = module_context.create_context(nodes[0])
     is_bound_method = context.is_bound_method()
-    params, return_variables = list(_find_inputs_and_outputs(context, nodes))
+    params, return_variables = list(_find_inputs_and_outputs(module_context, context, nodes))
 
     # Find variables
     # Is a class method / method
@@ -280,7 +280,22 @@ def extract_function(inference_state, path, module_context, name, pos, until_pos
     return Refactoring(inference_state.grammar, file_to_node_changes)
 
 
-def _find_inputs_and_outputs(context, nodes):
+def _is_name_input(module_context, names, first, last):
+    for name in names:
+        if name.api_type == 'param' or not name.parent_context.is_module():
+            if name.get_root_context() is not module_context:
+                print('true')
+                return True
+            if name.start_pos is None or not (first <= name.start_pos < last):
+                print('true1', first, name.start_pos, last)
+                return True
+    return False
+
+
+def _find_inputs_and_outputs(module_context, context, nodes):
+    first = nodes[0].start_pos
+    last = nodes[-1].end_pos
+
     inputs = []
     outputs = []
     for name in _find_non_global_names(nodes):
@@ -291,8 +306,7 @@ def _find_inputs_and_outputs(context, nodes):
             if name.value not in inputs:
                 name_definitions = context.goto(name, name.start_pos)
                 if not name_definitions \
-                        or any(not n.parent_context.is_module() or n.api_type == 'param'
-                               for n in name_definitions):
+                        or _is_name_input(module_context, name_definitions, first, last):
                     inputs.append(name.value)
 
     # Check if outputs are really needed:
diff --git a/test/refactor/extract_function.py b/test/refactor/extract_function.py
index 103f7d6e..e8b0491f 100644
--- a/test/refactor/extract_function.py
+++ b/test/refactor/extract_function.py
@@ -227,7 +227,7 @@ def x(v1):
 # ++++++++++++++++++++++++++++++++++++++++++++++++++
 import os
 # comment1
-def a(v1, v2, v3):
+def a(v1, v3):
     v2 = 2
     if 1:
         x, y = os.listdir(v1 + v2 * v3)
@@ -239,7 +239,7 @@ def a(v1, v2, v3):
 def x(v1):
     #foo
     #? 2 text {'new_name': 'a', 'until_line': 9, 'until_column': 5}
-    x, y = a(v1, v2, v3)
+    x, y = a(v1, v3)
     #bar
     return x, y
 # -------------------------------------------------- with-range-func-2
@@ -259,7 +259,7 @@ x
 import os
 # comment1
 # comment2
-def a(v1, v2, v3):
+def a(v1, v3):
     #foo
     v2 = 2
     if 1:
@@ -270,7 +270,7 @@ def a(v1, v2, v3):
 
 def x(v1):
     #? 2 text {'new_name': 'a', 'until_line': 10, 'until_column': 0}
-    y = a(v1, v2, v3)
+    y = a(v1, v3)
     return y
 x
 # -------------------------------------------------- with-range-func-3
@@ -298,3 +298,18 @@ def x(v1):
     #bar
     return x
 x
+# -------------------------------------------------- in-class-1
+class X1:
+    #? 11 text {'new_name': 'f', 'until_line': 4}
+    a = 3
+    c = a + 2
+# ++++++++++++++++++++++++++++++++++++++++++++++++++
+def f():
+    a = 3
+    c = a + 2
+    return c
+
+
+class X1:
+    #? 11 text {'new_name': 'f', 'until_line': 4}
+    c = f()