diff --git a/lib/builder/builder.js b/lib/builder/builder.js
index 9dc2c19604..4725d5d451 100644
--- a/lib/builder/builder.js
+++ b/lib/builder/builder.js
@@ -254,9 +254,7 @@ export default class Builder {
       })
       layoutsFiles.forEach((file) => {
         const name = file
-          .split('/')
-          .slice(1)
-          .join('/')
+          .replace(new RegExp(`^${this.options.dir.layouts}/`), '')
           .replace(/\.(vue|js)$/, '')
         if (name === 'error') {
           if (!templateVars.components.ErrorPage) {
diff --git a/test/fixtures/custom-dirs/custom-layouts/default.vue b/test/fixtures/custom-dirs/custom-layouts/layouts/default.vue
similarity index 100%
rename from test/fixtures/custom-dirs/custom-layouts/default.vue
rename to test/fixtures/custom-dirs/custom-layouts/layouts/default.vue
diff --git a/test/fixtures/custom-dirs/nuxt.config.js b/test/fixtures/custom-dirs/nuxt.config.js
index 45c658ef3a..5b157f3b7c 100644
--- a/test/fixtures/custom-dirs/nuxt.config.js
+++ b/test/fixtures/custom-dirs/nuxt.config.js
@@ -2,7 +2,7 @@ export default {
   css: [{ src: '~/custom-assets/app.css' }],
   dir: {
     assets: 'custom-assets',
-    layouts: 'custom-layouts',
+    layouts: 'custom-layouts/layouts',
     middleware: 'custom-middleware',
     pages: 'custom-pages',
     static: 'custom-static',