diff --git a/api/filesystem/filesystem.go b/api/filesystem/filesystem.go
index 8eed27fa7..bddfc0f61 100644
--- a/api/filesystem/filesystem.go
+++ b/api/filesystem/filesystem.go
@@ -934,7 +934,7 @@ func FileExists(filePath string) (bool, error) {
 func (service *Service) SafeMoveDirectory(originalPath, newPath string) error {
 	// 1. Backup the source directory to a different folder
 	backupDir := fmt.Sprintf("%s-%s", filepath.Dir(originalPath), "backup")
-	err := MoveDirectory(originalPath, backupDir)
+	err := MoveDirectory(originalPath, backupDir, false)
 	if err != nil {
 		return fmt.Errorf("failed to backup source directory: %w", err)
 	}
@@ -973,14 +973,14 @@ func restoreBackup(src, backupDir string) error {
 		return fmt.Errorf("failed to delete destination directory: %w", err)
 	}
 
-	err = MoveDirectory(backupDir, src)
+	err = MoveDirectory(backupDir, src, false)
 	if err != nil {
 		return fmt.Errorf("failed to restore backup directory: %w", err)
 	}
 	return nil
 }
 
-func MoveDirectory(originalPath, newPath string) error {
+func MoveDirectory(originalPath, newPath string, overwriteTargetPath bool) error {
 	if _, err := os.Stat(originalPath); err != nil {
 		return err
 	}
@@ -991,7 +991,13 @@ func MoveDirectory(originalPath, newPath string) error {
 	}
 
 	if alreadyExists {
-		return errors.New("Target path already exists")
+		if !overwriteTargetPath {
+			return fmt.Errorf("Target path already exists")
+		}
+
+		if err = os.RemoveAll(newPath); err != nil {
+			return fmt.Errorf("failed to overwrite path %s: %s", newPath, err.Error())
+		}
 	}
 
 	return os.Rename(originalPath, newPath)
diff --git a/api/filesystem/filesystem_move_test.go b/api/filesystem/filesystem_move_test.go
index de268371c..e2965c953 100644
--- a/api/filesystem/filesystem_move_test.go
+++ b/api/filesystem/filesystem_move_test.go
@@ -16,7 +16,7 @@ func Test_movePath_shouldFailIfSourceDirDoesNotExist(t *testing.T) {
 	file1 := addFile(destinationDir, "dir", "file")
 	file2 := addFile(destinationDir, "file")
 
-	err := MoveDirectory(sourceDir, destinationDir)
+	err := MoveDirectory(sourceDir, destinationDir, false)
 	assert.Error(t, err, "move directory should fail when source path is missing")
 	assert.FileExists(t, file1, "destination dir contents should remain")
 	assert.FileExists(t, file2, "destination dir contents should remain")
@@ -30,7 +30,7 @@ func Test_movePath_shouldFailIfDestinationDirExists(t *testing.T) {
 	file3 := addFile(destinationDir, "dir", "file")
 	file4 := addFile(destinationDir, "file")
 
-	err := MoveDirectory(sourceDir, destinationDir)
+	err := MoveDirectory(sourceDir, destinationDir, false)
 	assert.Error(t, err, "move directory should fail when destination directory already exists")
 	assert.FileExists(t, file1, "source dir contents should remain")
 	assert.FileExists(t, file2, "source dir contents should remain")
@@ -38,6 +38,22 @@ func Test_movePath_shouldFailIfDestinationDirExists(t *testing.T) {
 	assert.FileExists(t, file4, "destination dir contents should remain")
 }
 
+func Test_movePath_succesIfOverwriteSetWhenDestinationDirExists(t *testing.T) {
+	sourceDir := t.TempDir()
+	file1 := addFile(sourceDir, "dir", "file")
+	file2 := addFile(sourceDir, "file")
+	destinationDir := t.TempDir()
+	file3 := addFile(destinationDir, "dir", "file")
+	file4 := addFile(destinationDir, "file")
+
+	err := MoveDirectory(sourceDir, destinationDir, true)
+	assert.NoError(t, err)
+	assert.NoFileExists(t, file1, "source dir contents should be moved")
+	assert.NoFileExists(t, file2, "source dir contents should be moved")
+	assert.FileExists(t, file3, "destination dir contents should remain")
+	assert.FileExists(t, file4, "destination dir contents should remain")
+}
+
 func Test_movePath_successWhenSourceExistsAndDestinationIsMissing(t *testing.T) {
 	tmp := t.TempDir()
 	sourceDir := path.Join(tmp, "source")
@@ -46,7 +62,7 @@ func Test_movePath_successWhenSourceExistsAndDestinationIsMissing(t *testing.T)
 	file2 := addFile(sourceDir, "file")
 	destinationDir := path.Join(tmp, "destination")
 
-	err := MoveDirectory(sourceDir, destinationDir)
+	err := MoveDirectory(sourceDir, destinationDir, false)
 	assert.NoError(t, err)
 	assert.NoFileExists(t, file1, "source dir contents should be moved")
 	assert.NoFileExists(t, file2, "source dir contents should be moved")
diff --git a/api/git/backup.go b/api/git/backup.go
index 45c45cdf1..465a05af1 100644
--- a/api/git/backup.go
+++ b/api/git/backup.go
@@ -38,7 +38,7 @@ func CloneWithBackup(gitService portainer.GitService, fileService portainer.File
 		}
 	}
 
-	err = filesystem.MoveDirectory(options.ProjectPath, backupProjectPath)
+	err = filesystem.MoveDirectory(options.ProjectPath, backupProjectPath, true)
 	if err != nil {
 		return cleanFn, errors.WithMessage(err, "Unable to move git repository directory")
 	}
@@ -48,7 +48,7 @@ func CloneWithBackup(gitService portainer.GitService, fileService portainer.File
 	err = gitService.CloneRepository(options.ProjectPath, options.URL, options.ReferenceName, options.Username, options.Password, options.TLSSkipVerify)
 	if err != nil {
 		cleanUp = false
-		restoreError := filesystem.MoveDirectory(backupProjectPath, options.ProjectPath)
+		restoreError := filesystem.MoveDirectory(backupProjectPath, options.ProjectPath, false)
 		if restoreError != nil {
 			log.Warn().Err(restoreError).Msg("failed restoring backup folder")
 		}