diff --git a/packages/nuxt/src/app/composables/asyncContext.ts b/packages/nuxt/src/app/composables/asyncContext.ts
index 56fb88232c..5fa88df529 100644
--- a/packages/nuxt/src/app/composables/asyncContext.ts
+++ b/packages/nuxt/src/app/composables/asyncContext.ts
@@ -1,11 +1,9 @@
 // @ts-expect-error withAsyncContext is internal API
 import { getCurrentInstance, withAsyncContext as withVueAsyncContext } from 'vue'
 
-export function withNuxtContext <T>(fn: () => T) {
-  const nuxtApp = getCurrentInstance()?.appContext.app.$nuxt
-  return nuxtApp ? nuxtApp.runWithContext(fn) : fn()
-}
-
 export function withAsyncContext (fn: () => PromiseLike<unknown>) {
-  return withVueAsyncContext(() => withNuxtContext(fn))
+  return withVueAsyncContext(() => {
+    const nuxtApp = getCurrentInstance()?.appContext.app.$nuxt
+    return nuxtApp ? nuxtApp.runWithContext(fn) : fn()
+  })
 }
diff --git a/packages/nuxt/src/app/composables/component.ts b/packages/nuxt/src/app/composables/component.ts
index 8d28f5608e..31e43f8c6e 100644
--- a/packages/nuxt/src/app/composables/component.ts
+++ b/packages/nuxt/src/app/composables/component.ts
@@ -1,9 +1,8 @@
-import { defineComponent as _defineComponent, getCurrentInstance, reactive, toRefs } from 'vue'
-import type { ComponentOptions, DefineComponent } from 'vue'
+import { getCurrentInstance, reactive, toRefs } from 'vue'
+import type { DefineComponent, defineComponent } from 'vue'
 import { useHead } from '@unhead/vue'
 import type { NuxtApp } from '../nuxt'
 import { useNuxtApp } from '../nuxt'
-import { withNuxtContext } from './asyncContext'
 import { useAsyncData } from './asyncData'
 import { useRoute } from './router'
 import { createError } from './error'
@@ -29,7 +28,7 @@ async function runLegacyAsyncData (res: Record<string, any> | Promise<Record<str
 }
 
 /*@__NO_SIDE_EFFECTS__*/
-export const defineNuxtComponent: typeof _defineComponent =
+export const defineNuxtComponent: typeof defineComponent =
   function defineNuxtComponent (...args: any[]): any {
     const [options, key] = args
     const { setup } = options
@@ -69,18 +68,3 @@ export const defineNuxtComponent: typeof _defineComponent =
       }
     } as DefineComponent
   }
-
-export const defineComponent: typeof _defineComponent = (arg1: Function | Record<string, any>, arg2?: Partial<ComponentOptions>) => {
-  if (typeof arg1 === 'function') {
-    return _defineComponent((...args) => withNuxtContext(() => arg1(...args)), arg2)
-  }
-
-  if (arg1.setup) {
-    return _defineComponent({
-      ...arg1,
-      setup: (...args: any[]) => withNuxtContext(() => arg1.setup(...args))
-    }) as any
-  }
-
-  return _defineComponent(arg1)
-}
diff --git a/packages/nuxt/src/imports/presets.ts b/packages/nuxt/src/imports/presets.ts
index dde8d847cd..2ea4e66a78 100644
--- a/packages/nuxt/src/imports/presets.ts
+++ b/packages/nuxt/src/imports/presets.ts
@@ -30,7 +30,7 @@ const granularAppPresets: InlinePreset[] = [
     from: '#app/config'
   },
   {
-    imports: ['defineComponent', 'defineNuxtComponent'],
+    imports: ['defineNuxtComponent'],
     from: '#app/composables/component'
   },
   {
@@ -156,6 +156,7 @@ const vuePreset = defineUnimportPreset({
     'onScopeDispose',
 
     // Component
+    'defineComponent',
     'defineAsyncComponent',
     'resolveComponent',
     'getCurrentInstance',
diff --git a/packages/nuxt/test/auto-imports.test.ts b/packages/nuxt/test/auto-imports.test.ts
index 024fefd9db..9f8477aafa 100644
--- a/packages/nuxt/test/auto-imports.test.ts
+++ b/packages/nuxt/test/auto-imports.test.ts
@@ -81,8 +81,6 @@ describe('imports:nuxt', () => {
 })
 
 const excludedVueHelpers = [
-  // Nuxt stub for this helper
-  'defineComponent',
   // Already globally registered
   'defineEmits',
   'defineExpose',
diff --git a/packages/schema/src/config/build.ts b/packages/schema/src/config/build.ts
index ba3175f142..9025441b1c 100644
--- a/packages/schema/src/config/build.ts
+++ b/packages/schema/src/config/build.ts
@@ -188,7 +188,6 @@ export default defineUntypedSchema({
     asyncTransforms: {
       asyncFunctions: ['defineNuxtPlugin', 'defineNuxtRouteMiddleware'],
       objectDefinitions: {
-        defineComponent: ['setup'],
         defineNuxtComponent: ['asyncData', 'setup'],
         defineNuxtPlugin: ['setup'],
         definePageMeta: ['middleware', 'validate']
diff --git a/test/basic.test.ts b/test/basic.test.ts
index 88b67b1289..1b2172c7e3 100644
--- a/test/basic.test.ts
+++ b/test/basic.test.ts
@@ -1951,14 +1951,10 @@ describe.skipIf(isDev() || isWindows || !isRenderingJson)('payload rendering', (
   })
 })
 
-describe('Async context', () => {
-  it.skipIf(process.env.TEST_CONTEXT !== 'async')('should be available', async () => {
+describe.skipIf(process.env.TEST_CONTEXT !== 'async')('Async context', () => {
+  it('should be available', async () => {
     expect(await $fetch('/async-context')).toContain('&quot;hasApp&quot;: true')
   })
-  it('should transform `setup` within defineComponent', async () => {
-    const html = await $fetch('/async-transform-component')
-    expect(html).toContain('using automatic `setup` async transform')
-  })
 })
 
 describe.skipIf(isWindows)('useAsyncData', () => {
diff --git a/test/fixtures/basic/pages/async-transform-component.vue b/test/fixtures/basic/pages/async-transform-component.vue
deleted file mode 100644
index 03b7e2a3e0..0000000000
--- a/test/fixtures/basic/pages/async-transform-component.vue
+++ /dev/null
@@ -1,14 +0,0 @@
-<script>
-export default defineComponent({
-  async setup () {
-    await nextTick()
-    useRuntimeConfig()
-  }
-})
-</script>
-
-<template>
-  <div>
-    should not error out when using automatic `setup` async transform
-  </div>
-</template>