diff --git a/devstack/settings b/devstack/settings
index 82d273e5e2..d4ecb73cc8 100644
--- a/devstack/settings
+++ b/devstack/settings
@@ -8,3 +8,8 @@ local_mtu=$(ip link show | sed -ne 's/.*mtu \([0-9]\+\).*/\1/p' | sort -n | head
 # 50 bytes is overhead for vxlan (which is greater than GRE
 # allowing us to use either overlay option with this MTU.
 PUBLIC_BRIDGE_MTU=$((local_mtu - 50))
+
+# NOTE(vsaienko) disable placement-api as it breaks ironic CI and permanent fix
+# in Nova stuck at the decision phase https://review.openstack.org/#/c/414214/
+# https://launchpad.net/bugs/1651678
+disable_service placement-api
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