diff --git a/NEWS b/NEWS
index 616b3276..1c6b4398 100644
--- a/NEWS
+++ b/NEWS
@@ -11,6 +11,7 @@ What's new in psycopg 2.7.5
   (:ticket:`#677`).
 - Maybe fixed building on MSYS2 (as reported in :ticket:`#658`).
 - Allow string subclasses in connection and other places (:ticket:`#679`).
+- Don't raise an exception closing an unused named cursor (:ticket:`#716`).
 
 
 What's new in psycopg 2.7.4
diff --git a/psycopg/cursor_type.c b/psycopg/cursor_type.c
index b7fd1870..d73bc3a4 100644
--- a/psycopg/cursor_type.c
+++ b/psycopg/cursor_type.c
@@ -59,6 +59,11 @@ psyco_curs_close(cursorObject *self)
         char buffer[128];
         PGTransactionStatusType status;
 
+        if (!self->query) {
+            Dprintf("skipping named cursor close because unused");
+            goto close;
+        }
+
         if (self->conn) {
             status = PQtransactionStatus(self->conn->pgconn);
         }
@@ -66,17 +71,18 @@ psyco_curs_close(cursorObject *self)
             status = PQTRANS_UNKNOWN;
         }
 
-        if (!(status == PQTRANS_UNKNOWN || status == PQTRANS_INERROR)) {
-            EXC_IF_NO_MARK(self);
-            PyOS_snprintf(buffer, 127, "CLOSE %s", self->qname);
-            if (pq_execute(self, buffer, 0, 0, 1) == -1) return NULL;
-        }
-        else {
+        if (status == PQTRANS_UNKNOWN || status == PQTRANS_INERROR) {
             Dprintf("skipping named curs close because tx status %d",
                 (int)status);
+            goto close;
         }
+
+        EXC_IF_NO_MARK(self);
+        PyOS_snprintf(buffer, 127, "CLOSE %s", self->qname);
+        if (pq_execute(self, buffer, 0, 0, 1) == -1) return NULL;
     }
 
+close:
     self->closed = 1;
     Dprintf("psyco_curs_close: cursor at %p closed", self);
 
diff --git a/tests/test_cursor.py b/tests/test_cursor.py
index 76646160..d9dea0c5 100755
--- a/tests/test_cursor.py
+++ b/tests/test_cursor.py
@@ -443,6 +443,11 @@ class CursorTests(ConnectingTestCase):
         self.assertEqual([(2,), (3,), (4,)], cur2.fetchmany(3))
         self.assertEqual([(5,), (6,), (7,)], cur2.fetchall())
 
+    @skip_before_postgres(8, 0)
+    def test_named_noop_close(self):
+        cur = self.conn.cursor('test')
+        cur.close()
+
     @skip_before_postgres(8, 0)
     def test_scroll(self):
         cur = self.conn.cursor()
diff --git a/tests/test_with.py b/tests/test_with.py
index e5c0bc23..29b7e860 100755
--- a/tests/test_with.py
+++ b/tests/test_with.py
@@ -28,7 +28,7 @@ from __future__ import with_statement
 import psycopg2
 import psycopg2.extensions as ext
 
-from testutils import unittest, ConnectingTestCase
+from testutils import unittest, ConnectingTestCase, skip_before_postgres
 
 
 class WithTestCase(ConnectingTestCase):
@@ -217,6 +217,11 @@ class WithCursorTestCase(WithTestCase):
         else:
             self.fail("where is my exception?")
 
+    @skip_before_postgres(8, 0)
+    def test_named_with_noop(self):
+        with self.conn.cursor('named') as cur:
+            pass
+
 
 def test_suite():
     return unittest.TestLoader().loadTestsFromName(__name__)