Index: /trunk/src/org/openstreetmap/josm/actions/MergeNodesAction.java
===================================================================
--- /trunk/src/org/openstreetmap/josm/actions/MergeNodesAction.java	(revision 2101)
+++ /trunk/src/org/openstreetmap/josm/actions/MergeNodesAction.java	(revision 2102)
@@ -211,4 +211,6 @@
                 if (! nodesToDelete.contains(n)) {
                     newNodes.add(n);
+                } else {
+                    newNodes.add(targetNode);
                 }
             }
