diff --git a/src/encoding/Makefile b/src/encoding/Makefile
index d51b4166c..938497baa 100644
--- a/src/encoding/Makefile
+++ b/src/encoding/Makefile
@@ -2,7 +2,7 @@ top_builddir=../..
 include $(top_builddir)/Makefile.config
 
 OBJS-$(CONFIG_BZIP2)	+= bzip2.o
-OBJS-$(CONFIG_GZIP)	+= gzip.o
+OBJS-$(CONFIG_GZIP)	+= deflate.o
 OBJS-$(CONFIG_LZMA)	+= lzma.o LzmaDecode.o
 
 OBJS = encoding.o
diff --git a/src/encoding/deflate.c b/src/encoding/deflate.c
new file mode 100644
index 000000000..c211942f3
--- /dev/null
+++ b/src/encoding/deflate.c
@@ -0,0 +1,200 @@
+/* deflate/gzip encoding backend */
+
+#ifdef HAVE_CONFIG_H
+#include "config.h"
+#endif
+
+#include <stdio.h>
+#include <string.h>
+#ifdef HAVE_UNISTD_H
+#include <unistd.h>
+#endif
+#ifdef HAVE_ZLIB_H
+#include <zlib.h>
+#endif
+#include <errno.h>
+
+#include "elinks.h"
+
+#include "encoding/deflate.h"
+#include "encoding/encoding.h"
+#include "util/memory.h"
+
+/* How many bytes of compressed data to read before decompressing. */
+#define ELINKS_DEFLATE_BUFFER_LENGTH 5000
+
+struct deflate_enc_data {
+	z_stream deflate_stream;
+
+	/* The file descriptor from which we read.  */
+	int fdread;
+
+	unsigned int last_read:1;
+
+	/* A buffer for data that has been read from the file but not
+	 * yet decompressed.  z_stream.next_in and z_stream.avail_in
+	 * refer to this buffer.  */
+	unsigned char buf[ELINKS_DEFLATE_BUFFER_LENGTH];
+};
+
+static int
+deflate_open(struct stream_encoded *stream, int fd)
+{
+	/* A zero-initialized z_stream.  The compiler ensures that all
+	 * pointer members in it are null.  (Can't do this with memset
+	 * because C99 does not require all-bits-zero to be a null
+	 * pointer.)  */
+	static const z_stream null_z_stream = {0};
+	int err;
+
+	struct deflate_enc_data *data = mem_alloc(sizeof(*data));
+
+	stream->data = NULL;
+	if (!data) {
+		return -1;
+	}
+
+	/* Initialize all members of *data, except data->buf[], which
+	 * will be initialized on demand by deflate_read.  */
+	copy_struct(&data->deflate_stream, &null_z_stream);
+	data->fdread = fd;
+	data->last_read = 0;
+
+	err = inflateInit2(&data->deflate_stream, MAX_WBITS | 32);
+	if (err != Z_OK) {
+		mem_free(data);
+		return -1;
+	}
+	stream->data = data;
+
+	return 0;
+}
+
+static int
+deflate_read(struct stream_encoded *stream, unsigned char *buf, int len)
+{
+	struct deflate_enc_data *data = (struct deflate_enc_data *) stream->data;
+	int err = 0;
+
+	if (!data) return -1;
+
+	assert(len > 0);
+
+	if (data->last_read) return 0;
+
+	data->deflate_stream.avail_out = len;
+	data->deflate_stream.next_out = buf;
+
+	do {
+		if (data->deflate_stream.avail_in == 0) {
+			int l = safe_read(data->fdread, data->buf,
+			                  ELINKS_DEFLATE_BUFFER_LENGTH);
+
+			if (l == -1) {
+				if (errno == EAGAIN)
+					break;
+				else
+					return -1; /* I/O error */
+			} else if (l == 0) {
+				/* EOF. It is error: we wait for more bytes */
+				return -1;
+			}
+
+			data->deflate_stream.next_in = data->buf;
+			data->deflate_stream.avail_in = l;
+		}
+		err = inflate(&data->deflate_stream, Z_SYNC_FLUSH);
+		if (err == Z_STREAM_END) {
+			data->last_read = 1;
+			break;
+		} else if (err != Z_OK) {
+			return -1;
+		}
+	} while (data->deflate_stream.avail_out > 0);
+
+	assert(len - data->deflate_stream.avail_out == data->deflate_stream.next_out - buf);
+	return len - data->deflate_stream.avail_out;
+}
+
+static unsigned char *
+deflate_decode_buffer(unsigned char *data, int len, int *new_len)
+{
+	z_stream stream;
+	unsigned char *buffer = NULL;
+	int error;
+
+	if (!len) return NULL;
+	memset(&stream, 0, sizeof(z_stream));
+	stream.next_in = data;
+	stream.avail_in = len;
+
+	if (inflateInit2(&stream, MAX_WBITS | 32) != Z_OK)
+		return NULL;
+
+	do {
+		unsigned char *new_buffer;
+		size_t size = stream.total_out + MAX_STR_LEN;
+
+		new_buffer = mem_realloc(buffer, size);
+		if (!new_buffer) {
+			error = Z_MEM_ERROR;
+			break;
+		}
+
+		buffer		 = new_buffer;
+		stream.next_out  = buffer + stream.total_out;
+		stream.avail_out = MAX_STR_LEN;
+
+		error = inflate(&stream, Z_SYNC_FLUSH);
+		if (error == Z_STREAM_END) {
+			*new_len = stream.total_out;
+			error = Z_OK;
+			break;
+		}
+	} while (error == Z_OK && stream.avail_in > 0);
+
+	inflateEnd(&stream);
+
+	if (error != Z_OK) {
+		if (buffer) mem_free(buffer);
+		*new_len = 0;
+		return NULL;
+	}
+
+	return buffer;
+}
+
+static void
+deflate_close(struct stream_encoded *stream)
+{
+	struct deflate_enc_data *data = (struct deflate_enc_data *) stream->data;
+
+	if (data) {
+		inflateEnd(&data->deflate_stream);
+		close(data->fdread);
+		mem_free(data);
+		stream->data = 0;
+	}
+}
+
+static const unsigned char *const deflate_extensions[] = { NULL };
+
+const struct decoding_backend deflate_decoding_backend = {
+	"deflate",
+	deflate_extensions,
+	deflate_open,
+	deflate_read,
+	deflate_decode_buffer,
+	deflate_close,
+};
+
+static const unsigned char *const gzip_extensions[] = { ".gz", ".tgz", NULL };
+
+const struct decoding_backend gzip_decoding_backend = {
+	"gzip",
+	gzip_extensions,
+	deflate_open,
+	deflate_read,
+	deflate_decode_buffer,
+	deflate_close,
+};
diff --git a/src/encoding/gzip.h b/src/encoding/deflate.h
similarity index 50%
rename from src/encoding/gzip.h
rename to src/encoding/deflate.h
index c13038e33..4d3d2c3ae 100644
--- a/src/encoding/gzip.h
+++ b/src/encoding/deflate.h
@@ -1,11 +1,13 @@
-#ifndef EL__ENCODING_GZIP_H
-#define EL__ENCODING_GZIP_H
+#ifndef EL__ENCODING_DEFLATE_H
+#define EL__ENCODING_DEFLATE_H
 
 #include "encoding/encoding.h"
 
 #ifdef CONFIG_GZIP
+extern const struct decoding_backend deflate_decoding_backend;
 extern const struct decoding_backend gzip_decoding_backend;
 #else
+#define deflate_decoding_backend dummy_decoding_backend
 #define gzip_decoding_backend dummy_decoding_backend
 #endif
 
diff --git a/src/encoding/encoding.c b/src/encoding/encoding.c
index 42dc62b16..4d8c2d35b 100644
--- a/src/encoding/encoding.c
+++ b/src/encoding/encoding.c
@@ -84,7 +84,7 @@ static const struct decoding_backend dummy_decoding_backend = {
 /* Dynamic backend area */
 
 #include "encoding/bzip2.h"
-#include "encoding/gzip.h"
+#include "encoding/deflate.h"
 #include "encoding/lzma.h"
 
 static const struct decoding_backend *const decoding_backends[] = {
@@ -92,6 +92,7 @@ static const struct decoding_backend *const decoding_backends[] = {
 	&gzip_decoding_backend,
 	&bzip2_decoding_backend,
 	&lzma_decoding_backend,
+	&deflate_decoding_backend,
 };
 
 
diff --git a/src/encoding/encoding.h b/src/encoding/encoding.h
index 8b32c3b38..00b4ab2cf 100644
--- a/src/encoding/encoding.h
+++ b/src/encoding/encoding.h
@@ -9,6 +9,7 @@ enum stream_encoding {
 	ENCODING_GZIP,
 	ENCODING_BZIP2,
 	ENCODING_LZMA,
+	ENCODING_DEFLATE,
 
 	/* Max. number of known encoding including ENCODING_NONE. */
 	ENCODINGS_KNOWN,
diff --git a/src/encoding/gzip.c b/src/encoding/gzip.c
deleted file mode 100644
index a46800078..000000000
--- a/src/encoding/gzip.c
+++ /dev/null
@@ -1,241 +0,0 @@
-/* Gzip encoding (ENCODING_GZIP) backend */
-
-#ifdef HAVE_CONFIG_H
-#include "config.h"
-#endif
-
-#include <stdio.h>
-#include <string.h>
-#ifdef HAVE_UNISTD_H
-#include <unistd.h>
-#endif
-#ifdef HAVE_ZLIB_H
-#include <zlib.h>
-#endif
-
-#include "elinks.h"
-
-#include "encoding/encoding.h"
-#include "encoding/gzip.h"
-#include "osdep/osdep.h"
-#include "util/memory.h"
-
-
-static int
-gzip_open(struct stream_encoded *stream, int fd)
-{
-	stream->data = (void *) gzdopen(fd, "rb");
-	if (!stream->data) return -1;
-
-	return 0;
-}
-
-static int
-gzip_read(struct stream_encoded *stream, unsigned char *data, int len)
-{
-	gzclearerr((gzFile *) stream->data);
-	return gzread((gzFile *) stream->data, data, len);
-}
-
-
-/* The following code for decoding gzip in memory is a mix of code from zlib's
- * gzio.c file copyrighted 1995-2002 by Jean-loup Gailly and the costumized
- * header extraction in the linux kernels lib/inflate.c file not copyrighted
- * 1992 by Mark Adler. */
-
-static int gzip_header_magic[2] = { 0x1f, 0x8b };
-
-enum gzip_header_flag {
-	GZIP_ASCII_TEXT	 = 0x01, /* File probably ascii text (unused) */
-	GZIP_HEADER_CRC	 = 0x02, /* Header CRC present */
-	GZIP_EXTRA_FIELD = 0x04, /* Extra field present */
-	GZIP_ORIG_NAME	 = 0x08, /* Original file name present */
-	GZIP_COMMENT	 = 0x10, /* File comment present */
-	GZIP_RESERVED	 = 0xE0, /* bits 5..7: reserved */
-};
-
-/* Read a byte from a gz_stream; update next_in and avail_in. Return EOF for
- * end of file. */
-static int
-get_gzip_byte(z_stream *stream)
-{
-	if (stream->avail_in == 0)
-		return EOF;
-
-	stream->avail_in--;
-
-	return *(stream->next_in)++;
-}
-
-#define skip_gzip_bytes(stream, bytes) \
-	do { int i = bytes; while (i-- > 0) get_gzip_byte(stream); } while (0)
-
-#define skip_gzip_string(stream) \
-	do { int i; while ((i = get_gzip_byte(stream)) != 0 && i != EOF) ; } while (0)
-
-/* Check the gzip header of a gz_stream opened for reading. Set the stream mode
- * to transparent if the gzip magic header is not present; set s->err to
- * Z_DATA_ERROR if the magic header is present but the rest of the header is
- * incorrect. */
-static int
-skip_gzip_header(z_stream *stream)
-{
-	unsigned int len;
-	int method; /* method byte */
-	int flags;  /* flags byte */
-
-	/* Check the gzip magic header */
-	for (len = 0; len < 2; len++) {
-		int byte = get_gzip_byte(stream);
-
-		if (byte != gzip_header_magic[len]) {
-			if (len != 0) {
-				stream->avail_in++;
-				stream->next_in--;
-			}
-
-			if (byte != EOF) {
-				stream->avail_in++;
-				stream->next_in--;
-			}
-
-			return stream->avail_in != 0 ? Z_OK : Z_STREAM_END;
-		}
-	}
-
-	method = get_gzip_byte(stream);
-	flags = get_gzip_byte(stream);
-
-	if (method != Z_DEFLATED || (flags & GZIP_RESERVED) != 0)
-		return Z_DATA_ERROR;
-
-	/* Discard time, xflags and OS code: */
-	skip_gzip_bytes(stream, 6);
-
-	if (flags & GZIP_EXTRA_FIELD) {
-		/* Skip the extra field */
-		len  =  (unsigned int) get_gzip_byte(stream);
-		len += ((unsigned int) get_gzip_byte(stream)) << 8;
-
-		/* If EOF is encountered @len is garbage, but the loop below
-		 * will quit anyway. */
-		while (len-- > 0 && get_gzip_byte(stream) != EOF) ;
-	}
-
-	/* Skip the original file name */
-	if (flags & GZIP_ORIG_NAME)
-		skip_gzip_string(stream);
-
-	/* Skip the .gz file comment */
-	if (flags & GZIP_COMMENT)
-		skip_gzip_string(stream);
-
-	/* Skip the header CRC */
-	if (flags & GZIP_HEADER_CRC)
-		skip_gzip_bytes(stream, 2);
-
-	return Z_OK;
-}
-
-
-/* Freaking dammit. This is impossible for me to get working. */
-static unsigned char *
-gzip_decode_buffer(unsigned char *data, int len, int *new_len)
-{
-	unsigned char *buffer = NULL;
-	int error = Z_OK;
-	int tries, wbits;
-
-	/* This WBITS loop thing was something I got from
-	 * http://lists.infradead.org/pipermail/linux-mtd/2002-March/004429.html
-	 * but it doesn't fix it. :/ --jonas */
-	/* -MAX_WBITS impiles -> suppress zlib header and adler32.  try first
-	 * with -MAX_WBITS, if that fails, try MAX_WBITS to be backwards
-	 * compatible */
-	wbits = -MAX_WBITS;
-
-	for (tries = 0; tries < 2; tries++) {
-		z_stream stream;
-
-		memset(&stream, 0, sizeof(z_stream));
-
-		/* FIXME: Use inflateInit2() to configure low memory
-		 * usage for CONFIG_SMALL configurations. --jonas */
-		error = inflateInit2(&stream, wbits);
-		if (error != Z_OK) break;
-
-		stream.next_in = (char *)data;
-		stream.avail_in = len;
-
-		error = skip_gzip_header(&stream);
-		if (error != Z_OK) {
-			stream.next_in = (char *)data;
-			stream.avail_in = len;
-		}
-
-		do {
-			unsigned char *new_buffer;
-			size_t size = stream.total_out + MAX_STR_LEN;
-
-			assert(stream.total_out >= 0);
-			assert(stream.next_in);
-
-			new_buffer = mem_realloc(buffer, size);
-			if (!new_buffer) {
-				error = Z_MEM_ERROR;
-				break;
-			}
-
-			buffer		 = new_buffer;
-			stream.next_out  = buffer + stream.total_out;
-			stream.avail_out = MAX_STR_LEN;
-
-			error = inflate(&stream, Z_NO_FLUSH);
-			if (error == Z_STREAM_END) {
-				/* Here gzio.c has some detection of
-				 * concatenated .gz files and will do a gzip
-				 * header skip and an inflateReset() call
-				 * before continuing. It partly uses CRC to
-				 * detect that. */
-				*new_len = stream.total_out;
-				error = Z_OK;
-				break;
-			}
-
-		} while (error == Z_OK && stream.avail_in > 0);
-
-		inflateEnd(&stream);
-
-		if (error != Z_DATA_ERROR)
-			break;
-
-		/* Try again with next wbits */
-		wbits = -wbits;
-	}
-
-	if (error != Z_OK) {
-		if (buffer) mem_free(buffer);
-		*new_len = 0;
-		return NULL;
-	}
-
-	return buffer;
-}
-
-
-static void
-gzip_close(struct stream_encoded *stream)
-{
-	gzclose((gzFile *) stream->data);
-}
-
-static const unsigned char *const gzip_extensions[] = { ".gz", ".tgz", NULL };
-
-const struct decoding_backend gzip_decoding_backend = {
-	"gzip",
-	gzip_extensions,
-	gzip_open,
-	gzip_read,
-	gzip_decode_buffer,
-	gzip_close,
-};
diff --git a/src/protocol/http/http.c b/src/protocol/http/http.c
index bf675121c..ab27239d1 100644
--- a/src/protocol/http/http.c
+++ b/src/protocol/http/http.c
@@ -759,7 +759,7 @@ http_send_header(struct socket *socket)
 	add_to_string(&header, ", ");
 #endif
 
-	add_to_string(&header, "gzip");
+	add_to_string(&header, "deflate, gzip");
 #endif
 	add_crlf_to_string(&header);
 #endif
@@ -995,28 +995,23 @@ decompress_data(struct connection *conn, unsigned char *data, int len,
 		int *new_len)
 {
 	struct http_connection_info *http = conn->info;
-	/* to_read is number of bytes to be read from the decoder. It is 65536
-	 * (then we are just emptying the decoder buffer as we finished the walk
-	 * through the incoming stream already) or PIPE_BUF / 2 (when we are
-	 * still walking through the stream - then we write PIPE_BUF / 2 to the
-	 * pipe and read it back to the decoder ASAP; the point is that we can't
-	 * write more than PIPE_BUF to the pipe at once, but we also have to
-	 * never let read_encoded() (gzread(), in fact) to empty the pipe - that
-	 * causes further malfunction of zlib :[ ... so we will make sure that
-	 * we will always have at least PIPE_BUF / 2 + 1 in the pipe (returning
-	 * early otherwise)). */
 	enum { NORMAL, FINISHING } state = NORMAL;
 	int did_read = 0;
 	int *length_of_block;
 	unsigned char *output = NULL;
 
-	length_of_block = (http->length == LEN_CHUNKED ? &http->chunk_remaining
-						       : &http->length);
-
 #define BIG_READ 65536
-	if (!*length_of_block) {
-		/* Going to finish this decoding bussiness. */
-		state = FINISHING;
+
+	if (http->length == LEN_CHUNKED) {
+		if (http->chunk_remaining == CHUNK_ZERO_SIZE)
+			state = FINISHING;
+		length_of_block = &http->chunk_remaining;
+	} else {
+		length_of_block = &http->length;
+		if (!*length_of_block) {
+			/* Going to finish this decoding bussiness. */
+			state = FINISHING;
+		}
 	}
 
 	if (conn->content_encoding == ENCODING_NONE) {
@@ -1035,16 +1030,9 @@ decompress_data(struct connection *conn, unsigned char *data, int len,
 	}
 
 	do {
-		/* The initial value is used only when state == NORMAL.
-		 * Unconditional initialization avoids a GCC warning.  */
-		int to_read = PIPE_BUF / 2;
-
 		if (state == NORMAL) {
 			/* ... we aren't finishing yet. */
-			int written;
-
-			written = safe_write(conn->stream_pipes[1], data,
-						 len > to_read ? to_read : len);
+			int written = safe_write(conn->stream_pipes[1], data, len);
 
 			if (written > 0) {
 				data += written;
@@ -1084,14 +1072,13 @@ decompress_data(struct connection *conn, unsigned char *data, int len,
 		did_read = read_encoded(conn->stream, output + *new_len, BIG_READ);
 
 		if (did_read > 0) *new_len += did_read;
-		else if (did_read == -1) {
-			mem_free_set(&output, NULL);
-			*new_len = 0;
-			break; /* Loop prevention (bug 517), is this correct ? --Zas */
+		else {
+			if (did_read < 0) state = FINISHING;
+			break;
 		}
-	} while (len || did_read == BIG_READ);
+	} while (len || (did_read == BIG_READ));
 
-	shutdown_connection_stream(conn);
+	if (state == FINISHING) shutdown_connection_stream(conn);
 	return output;
 }
 
@@ -1218,11 +1205,8 @@ read_chunked_http_data(struct connection *conn, struct read_buffer *rb)
 		} else {
 			unsigned char *data;
 			int data_len;
-			int len;
 			int zero = (http->chunk_remaining == CHUNK_ZERO_SIZE);
-
-			if (zero) http->chunk_remaining = 0;
-			len = http->chunk_remaining;
+			int len = zero ? 0 : http->chunk_remaining;
 
 			/* Maybe everything necessary didn't come yet.. */
 			int_upper_bound(&len, rb->length);
@@ -1863,6 +1847,8 @@ again:
 		if (file_encoding != ENCODING_GZIP
 		    && (!strcasecmp(d, "gzip") || !strcasecmp(d, "x-gzip")))
 		    	conn->content_encoding = ENCODING_GZIP;
+		if (!strcasecmp(d, "deflate") || !strcasecmp(d, "x-deflate"))
+			conn->content_encoding = ENCODING_DEFLATE;
 #endif
 
 #ifdef CONFIG_BZIP2
@@ -1879,8 +1865,7 @@ again:
 		conn->cached->encoding_info = stracpy(get_encoding_name(conn->content_encoding));
 	}
 
-	if (http->length == -1
-	    || (PRE_HTTP_1_1(http->recv_version) && http->close))
+	if (http->length == -1 || http->close)
 		socket->state = SOCKET_END_ONCLOSE;
 
 	read_http_data(socket, rb);