diff --git a/salt/states/file.py b/salt/states/file.py
index a9287dce22b5..e895b361b202 100644
--- a/salt/states/file.py
+++ b/salt/states/file.py
@@ -2311,8 +2311,10 @@ def managed(name,
 
         If ``True``, files managed using ``contents``, ``contents_pillar``, or
         ``contents_grains`` will have a newline added to the end of the file if
-        one is not present. Setting this option to ``False`` will omit this
-        final newline.
+        one is not present. Setting this option to ``False`` will ensure the
+        final line, or entry, does not contain a new line. If the last line, or
+        entry in the file does contain a new line already, this option will not
+        remove it.
 
     contents_delimiter
         .. versionadded:: 2015.8.4
@@ -2635,8 +2637,11 @@ def managed(name,
             for part in validated_contents:
                 for line in part.splitlines():
                     contents += line.rstrip('\n').rstrip('\r') + os.linesep
-            if contents_newline and not contents.endswith(os.linesep):
-                contents += os.linesep
+            if not contents_newline:
+                # If contents newline is set to False, strip out the newline
+                # character and carriage return character
+                contents = contents.rstrip('\n').rstrip('\r')
+
         except UnicodeDecodeError:
             # Either something terrible happened, or we have binary data.
             if template:
diff --git a/tests/integration/states/test_file.py b/tests/integration/states/test_file.py
index 521fd52b176e..fcd53b43b117 100644
--- a/tests/integration/states/test_file.py
+++ b/tests/integration/states/test_file.py
@@ -575,6 +575,68 @@ def test_managed_contents(self):
                 if os.path.exists(managed_files[typ]):
                     os.remove(managed_files[typ])
 
+    def test_managed_contents_with_contents_newline(self):
+        '''
+        test file.managed with contents by using the default content_newline
+        flag.
+        '''
+        contents = 'test_managed_contents_with_newline_one'
+        name = os.path.join(TMP, 'foo')
+
+        # Create a file named foo with contents as above but with a \n at EOF
+        self.run_state('file.managed', name=name, contents=contents,
+                       contents_newline=True)
+        with salt.utils.files.fopen(name, 'r') as fp_:
+            last_line = fp_.read()
+            self.assertEqual((contents + os.linesep), last_line)
+
+    def test_managed_contents_with_contents_newline_false(self):
+        '''
+        test file.managed with contents by using the non default content_newline
+        flag.
+        '''
+        contents = 'test_managed_contents_with_newline_one'
+        name = os.path.join(TMP, 'bar')
+
+        # Create a file named foo with contents as above but with a \n at EOF
+        self.run_state('file.managed', name=name, contents=contents,
+                       contents_newline=False)
+        with salt.utils.files.fopen(name, 'r') as fp_:
+            last_line = fp_.read()
+            self.assertEqual(contents, last_line)
+
+    def test_managed_multiline_contents_with_contents_newline(self):
+        '''
+        test file.managed with contents by using the non default content_newline
+        flag.
+        '''
+        contents = ('this is a cookie{}this is another cookie'.
+                    format(os.linesep))
+        name = os.path.join(TMP, 'bar')
+
+        # Create a file named foo with contents as above but with a \n at EOF
+        self.run_state('file.managed', name=name, contents=contents,
+                       contents_newline=True)
+        with salt.utils.files.fopen(name, 'r') as fp_:
+            last_line = fp_.read()
+            self.assertEqual((contents + os.linesep), last_line)
+
+    def test_managed_multiline_contents_with_contents_newline_false(self):
+        '''
+        test file.managed with contents by using the non default content_newline
+        flag.
+        '''
+        contents = ('this is a cookie{}this is another cookie'.
+                    format(os.linesep))
+        name = os.path.join(TMP, 'bar')
+
+        # Create a file named foo with contents as above but with a \n at EOF
+        self.run_state('file.managed', name=name, contents=contents,
+                       contents_newline=False)
+        with salt.utils.files.fopen(name, 'r') as fp_:
+            last_line = fp_.read()
+            self.assertEqual(contents, last_line)
+
     @skip_if_not_root
     @skipIf(IS_WINDOWS, 'Windows does not support "mode" kwarg. Skipping.')
     @skipIf(not salt.utils.path.which('visudo'), 'sudo is missing')