diff --git a/src/chat_control.py b/src/chat_control.py
index 6b1b47d45..881b286cf 100644
--- a/src/chat_control.py
+++ b/src/chat_control.py
@@ -889,12 +889,26 @@ class ChatControl(ChatControlBase):
 			self.status_tooltip.disable()
 		# setup the label that holds name and jid
 		banner_name_label.set_markup(label_text)
+	
+	def on_toggle_gpg_togglebutton(self, widget):
+		gajim.config.set_per('contacts', self.contact.get_full_jid(),
+			'gpg_enabled', widget.get_active())
 
 	def _update_gpg(self):
 		tb = self.xml.get_widget('gpg_togglebutton')
 		if self.contact.keyID: # we can do gpg
 			tb.set_sensitive(True)
 			tt = _('OpenPGP Encryption')
+
+			# restore gpg pref
+			gpg_pref = gajim.config.get_per('contacts',
+				self.contact.get_full_jid(), 'gpg_enabled')
+			if gpg_pref == None:
+				gajim.config.add_per('contacts', self.contact.get_full_jid())
+				gpg_pref = gajim.config.get_per('contacts',
+					self.contact.get_full_jid(), 'gpg_enabled')
+			tb.set_active(gpg_pref)
+
 		else:
 			tb.set_sensitive(False)
 			#we talk about a contact here
diff --git a/src/common/config.py b/src/common/config.py
index 2f62a14e1..e5f2b4787 100644
--- a/src/common/config.py
+++ b/src/common/config.py
@@ -284,6 +284,9 @@ class Config:
 			'state_muc_msg_color': [ opt_color, 'mediumblue' ],
 			'state_muc_directed_msg_color': [ opt_color, 'red2' ],
 		}, {}),
+		'contacts': ({
+			'gpg_enabled': [ opt_bool, False ],
+		}, {}),
 	}
 
 	statusmsg_default = {
diff --git a/src/common/connection.py b/src/common/connection.py
index 29f7771f8..468a6464c 100644
--- a/src/common/connection.py
+++ b/src/common/connection.py
@@ -727,6 +727,10 @@ class Connection(ConnectionHandlers):
 			return
 		if remove_auth:
 			self.connection.getRoster().delItem(jid)
+			jid_list = gajim.config.del_per('contacts')
+			for j in jid_list:
+				if j.startswith(jid):
+					gajim.config.del_per('contacts', j)
 		else:
 			self.connection.getRoster().Unsubscribe(jid)
 			self.update_contact(jid, '', [])
diff --git a/src/gtkgui.glade b/src/gtkgui.glade
index 8360787ef..26288f9ca 100644
--- a/src/gtkgui.glade
+++ b/src/gtkgui.glade
@@ -18268,6 +18268,7 @@ Status message</property>
 			      <property name="focus_on_click">False</property>
 			      <property name="active">False</property>
 			      <property name="inconsistent">False</property>
+                  <signal name="clicked" handler="on_toggle_gpg_togglebutton" last_modification_time="Fri, 14 Apr 2006 22:50:46 GMT"/>
 
 			      <child>
 				<widget class="GtkImage" id="image1333">