diff --git a/defaults/main.yml b/defaults/main.yml
index da40ff60..b703e225 100644
--- a/defaults/main.yml
+++ b/defaults/main.yml
@@ -95,6 +95,7 @@ horizon_dropdown_max_items: 30
 horizon_instance_log_length: 35
 horizon_overview_days_range: 1
 horizon_images_upload_mode: direct
+horizon_images_allow_location: False
 horizon_time_zone: UTC
 horizon_enforce_password_check: False
 horizon_disable_password_reveal: False
diff --git a/releasenotes/notes/image-allow-location-58212b8e506639f2.yaml b/releasenotes/notes/image-allow-location-58212b8e506639f2.yaml
new file mode 100644
index 00000000..b5b323a1
--- /dev/null
+++ b/releasenotes/notes/image-allow-location-58212b8e506639f2.yaml
@@ -0,0 +1,5 @@
+---
+features:
+  - The ``horizon_images_allow_location`` variable is added to support the
+    ``IMAGES_ALLOW_LOCATION`` setting in the horizon_local_settings.py file to
+    allow to specify and external location during the image creation.
diff --git a/templates/horizon_local_settings.py.j2 b/templates/horizon_local_settings.py.j2
index 059adb72..12e0be06 100644
--- a/templates/horizon_local_settings.py.j2
+++ b/templates/horizon_local_settings.py.j2
@@ -356,6 +356,11 @@ IMAGE_RESERVED_CUSTOM_PROPERTIES = []
 # image form. See documentation for deployment considerations.
 HORIZON_IMAGES_UPLOAD_MODE = '{{ horizon_images_upload_mode }}'
 
+# Allow a location to be set when creating or updating Glance images.
+# If using Glance V2, this value should be False unless the Glance
+# configuration and policies allow setting locations.
+IMAGES_ALLOW_LOCATION = '{{ horizon_images_allow_location }}'
+
 # OPENSTACK_ENDPOINT_TYPE specifies the endpoint type to use for the endpoints
 # in the Keystone service catalog. Use this setting when Horizon is running
 # external to the OpenStack environment. The default is 'publicURL'.