diff --git a/pkg/core/dao/dao.go b/pkg/core/dao/dao.go
index 978121feb..f24c7267c 100644
--- a/pkg/core/dao/dao.go
+++ b/pkg/core/dao/dao.go
@@ -32,7 +32,7 @@ type DAO interface {
 	GetHeaderHashes() ([]util.Uint256, error)
 	GetNEP5Balances(acc util.Uint160) (*state.NEP5Balances, error)
 	GetNEP5TransferLog(acc util.Uint160, index uint32) (*state.NEP5TransferLog, error)
-	GetNextContractID() (int32, error)
+	GetAndUpdateNextContractID() (int32, error)
 	GetStorageItem(id int32, key []byte) *state.StorageItem
 	GetStorageItems(id int32) (map[string]*state.StorageItem, error)
 	GetStorageItemsWithPrefix(id int32, prefix []byte) (map[string]*state.StorageItem, error)
@@ -47,7 +47,6 @@ type DAO interface {
 	PutCurrentHeader(hashAndIndex []byte) error
 	PutNEP5Balances(acc util.Uint160, bs *state.NEP5Balances) error
 	PutNEP5TransferLog(acc util.Uint160, index uint32, lg *state.NEP5TransferLog) error
-	PutNextContractID(id int32) error
 	PutStorageItem(id int32, key []byte, si *state.StorageItem) error
 	PutVersion(v string) error
 	StoreAsBlock(block *block.Block) error
@@ -173,25 +172,19 @@ func (dao *Simple) DeleteContractState(hash util.Uint160) error {
 	return dao.Store.Delete(key)
 }
 
-// GetNextContractID returns id for the next contract and increases stored id.
-func (dao *Simple) GetNextContractID() (int32, error) {
+// GetAndUpdateNextContractID returns id for the next contract and increases stored ID.
+func (dao *Simple) GetAndUpdateNextContractID() (int32, error) {
+	var id int32
 	key := storage.SYSContractID.Bytes()
 	data, err := dao.Store.Get(key)
-	if err != nil {
-		if err == storage.ErrKeyNotFound {
-			err = nil
-		}
+	if err == nil {
+		id = int32(binary.LittleEndian.Uint32(data))
+	} else if err != storage.ErrKeyNotFound {
 		return 0, err
 	}
-	return int32(binary.LittleEndian.Uint32(data)), nil
-}
-
-// PutNextContractID sets next contract id to id.
-func (dao *Simple) PutNextContractID(id int32) error {
-	key := storage.SYSContractID.Bytes()
-	data := make([]byte, 4)
-	binary.LittleEndian.PutUint32(data, uint32(id))
-	return dao.Store.Put(key, data)
+	data = make([]byte, 4)
+	binary.LittleEndian.PutUint32(data, uint32(id+1))
+	return id, dao.Store.Put(key, data)
 }
 
 // -- end contracts.
diff --git a/pkg/core/dao/dao_test.go b/pkg/core/dao/dao_test.go
index 2da5f7f70..a94649467 100644
--- a/pkg/core/dao/dao_test.go
+++ b/pkg/core/dao/dao_test.go
@@ -84,15 +84,17 @@ func TestDeleteContractState(t *testing.T) {
 	require.Nil(t, gotContractState)
 }
 
-func TestSimple_GetNextContractID(t *testing.T) {
+func TestSimple_GetAndUpdateNextContractID(t *testing.T) {
 	dao := NewSimple(storage.NewMemoryStore(), netmode.UnitTestNet)
-	id, err := dao.GetNextContractID()
+	id, err := dao.GetAndUpdateNextContractID()
 	require.NoError(t, err)
 	require.EqualValues(t, 0, id)
-	require.NoError(t, dao.PutNextContractID(10))
-	id, err = dao.GetNextContractID()
+	id, err = dao.GetAndUpdateNextContractID()
 	require.NoError(t, err)
-	require.EqualValues(t, 10, id)
+	require.EqualValues(t, 1, id)
+	id, err = dao.GetAndUpdateNextContractID()
+	require.NoError(t, err)
+	require.EqualValues(t, 2, id)
 }
 
 func TestPutGetAppExecResult(t *testing.T) {
diff --git a/pkg/core/interop_neo.go b/pkg/core/interop_neo.go
index a2ad11d09..0c77bbc23 100644
--- a/pkg/core/interop_neo.go
+++ b/pkg/core/interop_neo.go
@@ -91,14 +91,11 @@ func contractCreate(ic *interop.Context, v *vm.VM) error {
 	if contract != nil {
 		return errors.New("contract already exists")
 	}
-	id, err := ic.DAO.GetNextContractID()
+	id, err := ic.DAO.GetAndUpdateNextContractID()
 	if err != nil {
 		return err
 	}
 	newcontract.ID = id
-	if err := ic.DAO.PutNextContractID(id); err != nil {
-		return err
-	}
 	if err := ic.DAO.PutContractState(newcontract); err != nil {
 		return err
 	}