diff --git a/packages/next/telemetry/storage.ts b/packages/next/telemetry/storage.ts
index 8c2274378028619..00ba9f9071bc53e 100644
--- a/packages/next/telemetry/storage.ts
+++ b/packages/next/telemetry/storage.ts
@@ -152,7 +152,11 @@ export class Telemetry {
   }
 
   get isEnabled(): boolean {
-    return !!this.conf && this.conf.get(TELEMETRY_KEY_ENABLED, true) !== false
+    return (
+      !this.NEXT_TELEMETRY_DISABLED &&
+      !!this.conf &&
+      this.conf.get(TELEMETRY_KEY_ENABLED, true) !== false
+    )
   }
 
   oneWayHash = (payload: BinaryLike): string => {
diff --git a/test/integration/telemetry/test/index.test.js b/test/integration/telemetry/test/index.test.js
index 3558f6360ab4925..0f3abcca358831a 100644
--- a/test/integration/telemetry/test/index.test.js
+++ b/test/integration/telemetry/test/index.test.js
@@ -72,6 +72,18 @@ describe('Telemetry CLI', () => {
     expect(stdout).toMatch(/Status: Disabled/)
   })
 
+  it('can disable telemetry with env NEXT_TELEMETRY_DISABLED', async () => {
+    // next config is not reset between tests
+    await runNextCommand(['telemetry', 'enable'])
+    const { stdout } = await runNextCommand(['telemetry', 'status'], {
+      stdout: true,
+      env: {
+        NEXT_TELEMETRY_DISABLED: '1',
+      },
+    })
+    expect(stdout).toMatch(/Status: Disabled/)
+  })
+
   it('detects isSrcDir dir correctly for `next build`', async () => {
     // must clear cache for GSSP imports to be detected correctly
     await fs.remove(path.join(appDir, '.next'))