diff --git a/src/app/layout/qgslayoutdesignerdialog.cpp b/src/app/layout/qgslayoutdesignerdialog.cpp
index 67b24158b53..dbd7129e413 100644
--- a/src/app/layout/qgslayoutdesignerdialog.cpp
+++ b/src/app/layout/qgslayoutdesignerdialog.cpp
@@ -39,6 +39,7 @@
 #include "qgslayoutitemmap.h"
 #include "qgsprintlayout.h"
 #include "qgsmapcanvas.h"
+#include "qgsrendercontext.h"
 #include "qgsmessagebar.h"
 #include "qgsmessageviewer.h"
 #include "qgsgui.h"
@@ -3961,7 +3962,7 @@ bool QgsLayoutDesignerDialog::getRasterExportSettings( QgsLayoutExporter::ImageE
 bool QgsLayoutDesignerDialog::getSvgExportSettings( QgsLayoutExporter::SvgExportSettings &settings )
 {
   bool groupLayers = false;
-  bool prevSettingLabelsAsOutlines = false;
+  QgsRenderContext::TextRenderFormat prevTextRenderFormat = mMasterLayout->layoutProject()->labelingEngineSettings().defaultTextRenderFormat();
   bool clipToContent = false;
   double marginTop = 0.0;
   double marginRight = 0.0;
@@ -3985,14 +3986,19 @@ bool QgsLayoutDesignerDialog::getSvgExportSettings( QgsLayoutExporter::SvgExport
     bottomMargin = mLayout->customProperty( QStringLiteral( "svgCropMarginBottom" ), 0 ).toInt();
     leftMargin = mLayout->customProperty( QStringLiteral( "svgCropMarginLeft" ), 0 ).toInt();
     includeMetadata = mLayout->customProperty( QStringLiteral( "svgIncludeMetadata" ), 1 ).toBool();
-    prevSettingLabelsAsOutlines = mLayout->customProperty( QStringLiteral( "svgRenderTextAsOutlines" ), 1 ).toBool();
+    const int prevLayoutSettingLabelsAsOutlines = mLayout->customProperty( QStringLiteral( "svgTextFormat" ), -1 ).toInt();
+    if ( prevLayoutSettingLabelsAsOutlines >= 0 )
+    {
+      // previous layout setting takes default over project setting
+      prevTextRenderFormat = static_cast< QgsRenderContext::TextRenderFormat >( prevLayoutSettingLabelsAsOutlines );
+    }
   }
 
   // open options dialog
   QDialog dialog;
   Ui::QgsSvgExportOptionsDialog options;
   options.setupUi( &dialog );
-  options.chkTextAsOutline->setChecked( prevSettingLabelsAsOutlines );
+  options.chkTextAsOutline->setChecked( prevTextRenderFormat == QgsRenderContext::TextFormatAlwaysOutlines );
   options.chkMapLayersAsGroup->setChecked( layersAsGroup );
   options.mClipToContentGroupBox->setChecked( cropToContents );
   options.mForceVectorCheckBox->setChecked( previousForceVector );
@@ -4024,7 +4030,7 @@ bool QgsLayoutDesignerDialog::getSvgExportSettings( QgsLayoutExporter::SvgExport
     mLayout->setCustomProperty( QStringLiteral( "svgCropMarginBottom" ), marginBottom );
     mLayout->setCustomProperty( QStringLiteral( "svgCropMarginLeft" ), marginLeft );
     mLayout->setCustomProperty( QStringLiteral( "svgIncludeMetadata" ), includeMetadata ? 1 : 0 );
-    mLayout->setCustomProperty( QStringLiteral( "svgRenderTextAsOutlines" ), textRenderFormat == QgsRenderContext::TextFormatAlwaysOutlines ? 1 : 0 );
+    mLayout->setCustomProperty( QStringLiteral( "svgTextFormat" ), static_cast< int >( textRenderFormat ) );
   }
 
   settings.cropToContents = clipToContent;