diff --git a/Zend/tests/bug60738.phpt b/Zend/tests/bug60738.phpt
new file mode 100644
index 0000000000000..e4080715ec72a
--- /dev/null
+++ b/Zend/tests/bug60738.phpt
@@ -0,0 +1,22 @@
+--TEST--
+Bug #60738 Allow 'set_error_handler' to handle NULL
+--FILE--
+<?php
+
+var_dump(set_error_handler(
+    function() { echo 'Intercepted error!', "\n"; }
+));
+
+trigger_error('Error!');
+
+var_dump(set_error_handler(null));
+
+trigger_error('Error!');
+?>
+--EXPECTF--
+NULL
+Intercepted error!
+object(Closure)#1 (0) {
+}
+
+Notice: Error! in %s on line %d
diff --git a/Zend/tests/bug60738_variation.phpt b/Zend/tests/bug60738_variation.phpt
new file mode 100644
index 0000000000000..d7cf00ecdbc48
--- /dev/null
+++ b/Zend/tests/bug60738_variation.phpt
@@ -0,0 +1,23 @@
+--TEST--
+Bug #60738 Allow 'set_error_handler' to handle NULL
+--FILE--
+<?php
+
+var_dump(set_exception_handler(
+    function() { echo 'Intercepted exception!', "\n"; }
+));
+
+var_dump(set_exception_handler(null));
+
+throw new Exception('Exception!');
+?>
+--EXPECTF--
+NULL
+object(Closure)#1 (0) {
+}
+
+Fatal error: Uncaught exception 'Exception' with message 'Exception!' in %s:%d
+Stack trace:
+#0 {main}
+  thrown in %s on line %d
+
diff --git a/Zend/zend_builtin_functions.c b/Zend/zend_builtin_functions.c
index 8d39a31ad0cd1..ab79ec14f3bdd 100644
--- a/Zend/zend_builtin_functions.c
+++ b/Zend/zend_builtin_functions.c
@@ -1413,7 +1413,6 @@ ZEND_FUNCTION(trigger_error)
 ZEND_FUNCTION(set_error_handler)
 {
 	zval *error_handler;
-	zend_bool had_orig_error_handler=0;
 	char *error_handler_name = NULL;
 	long error_type = E_ALL | E_STRICT;
 
@@ -1421,38 +1420,31 @@ ZEND_FUNCTION(set_error_handler)
 		return;
 	}
 
-	if (!zend_is_callable(error_handler, 0, &error_handler_name TSRMLS_CC)) {
-		zend_error(E_WARNING, "%s() expects the argument (%s) to be a valid callback",
-				   get_active_function_name(TSRMLS_C), error_handler_name?error_handler_name:"unknown");
+	if (Z_TYPE_P(error_handler) != IS_NULL) { /* NULL == unset */
+		if (!zend_is_callable(error_handler, 0, &error_handler_name TSRMLS_CC)) {
+			zend_error(E_WARNING, "%s() expects the argument (%s) to be a valid callback",
+					   get_active_function_name(TSRMLS_C), error_handler_name?error_handler_name:"unknown");
+			efree(error_handler_name);
+			return;
+		}
 		efree(error_handler_name);
-		return;
 	}
-	efree(error_handler_name);
 
 	if (EG(user_error_handler)) {
-		had_orig_error_handler = 1;
-		*return_value = *EG(user_error_handler);
-		zval_copy_ctor(return_value);
-		INIT_PZVAL(return_value);
+		RETVAL_ZVAL(EG(user_error_handler), 1, 0);
+
 		zend_stack_push(&EG(user_error_handlers_error_reporting), &EG(user_error_handler_error_reporting), sizeof(EG(user_error_handler_error_reporting)));
 		zend_ptr_stack_push(&EG(user_error_handlers), EG(user_error_handler));
 	}
-	ALLOC_ZVAL(EG(user_error_handler));
 
-	if (!zend_is_true(error_handler)) { /* unset user-defined handler */
-		FREE_ZVAL(EG(user_error_handler));
+	if (Z_TYPE_P(error_handler) == IS_NULL) { /* unset user-defined handler */
 		EG(user_error_handler) = NULL;
-		RETURN_TRUE;
+		return;
 	}
 
+	ALLOC_ZVAL(EG(user_error_handler));
+	MAKE_COPY_ZVAL(&error_handler, EG(user_error_handler));
 	EG(user_error_handler_error_reporting) = (int)error_type;
-	*EG(user_error_handler) = *error_handler;
-	zval_copy_ctor(EG(user_error_handler));
-	INIT_PZVAL(EG(user_error_handler));
-
-	if (!had_orig_error_handler) {
-		RETURN_NULL();
-	}
 }
 /* }}} */
 
@@ -1486,7 +1478,6 @@ ZEND_FUNCTION(set_exception_handler)
 {
 	zval *exception_handler;
 	char *exception_handler_name = NULL;
-	zend_bool had_orig_exception_handler=0;
 
 	if (zend_parse_parameters(ZEND_NUM_ARGS() TSRMLS_CC, "z", &exception_handler) == FAILURE) {
 		return;
@@ -1503,24 +1494,18 @@ ZEND_FUNCTION(set_exception_handler)
 	}
 
 	if (EG(user_exception_handler)) {
-		had_orig_exception_handler = 1;
-		*return_value = *EG(user_exception_handler);
-		zval_copy_ctor(return_value);
+		RETVAL_ZVAL(EG(user_exception_handler), 1, 0);
+
 		zend_ptr_stack_push(&EG(user_exception_handlers), EG(user_exception_handler));
 	}
-	ALLOC_ZVAL(EG(user_exception_handler));
 
 	if (Z_TYPE_P(exception_handler) == IS_NULL) { /* unset user-defined handler */
-		FREE_ZVAL(EG(user_exception_handler));
 		EG(user_exception_handler) = NULL;
-		RETURN_TRUE;
+		return;
 	}
 
+	ALLOC_ZVAL(EG(user_exception_handler));
 	MAKE_COPY_ZVAL(&exception_handler, EG(user_exception_handler))
-
-	if (!had_orig_exception_handler) {
-		RETURN_NULL();
-	}
 }
 /* }}} */