diff --git a/compiler/lambdalifting.nim b/compiler/lambdalifting.nim
index 959632bab..753602c80 100644
--- a/compiler/lambdalifting.nim
+++ b/compiler/lambdalifting.nim
@@ -716,6 +716,7 @@ proc liftCapturedVars(n: PNode; owner: PSym; d: DetectionPass;
         #localError(n.info, "internal error: closure to closure created")
         # now we know better, so patch it:
         n.sons[0] = x.sons[0]
+        n.sons[1] = x.sons[1]
   of nkLambdaKinds, nkIteratorDef:
     if n.typ != nil and n[namePos].kind == nkSym:
       let m = newSymNode(n[namePos].sym)
diff --git a/tests/closure/tdeeplynested.nim b/tests/closure/tdeeplynested.nim
new file mode 100644
index 000000000..0cd9a3694
--- /dev/null
+++ b/tests/closure/tdeeplynested.nim
@@ -0,0 +1,20 @@
+discard """
+  output: '''108'''
+"""
+
+# bug #4070
+
+proc id(f: (proc())): auto =
+  return f
+
+proc foo(myinteger: int): (iterator(): int) =
+  return iterator(): int {.closure.} =
+           proc bar() =
+             proc kk() =
+               echo "int: ", myinteger
+
+             kk()
+
+           id(bar)()
+
+discard foo(108)()