diff --git a/CHANGELOG b/CHANGELOG
index ddc65357..9f87ed05 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -216,6 +216,9 @@ HISTORY
 
   ++ Bugfixes:
 
+  2015-03-21: Simon Goldschmidt (patch by Christoffer Lind)
+  * dhcp.h/.c: fixed bug #38204 (DHCP lease time not handled correctly)
+
   2015-03-20: Simon Goldschmidt
   * dhcp.c: fixed bug #38714 (Missing option and client address in DHCPRELEASE message)
 
diff --git a/src/core/dhcp.c b/src/core/dhcp.c
index 94d6a56a..92f268da 100644
--- a/src/core/dhcp.c
+++ b/src/core/dhcp.c
@@ -360,13 +360,19 @@ dhcp_coarse_tmr()
   while (netif != NULL) {
     /* only act on DHCP configured interfaces */
     if (netif->dhcp != NULL) {
+      /* compare lease time to expire timeout */
+      if (++netif->dhcp->lease_used == netif->dhcp->t0_timeout) {
+        LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE | LWIP_DBG_STATE, ("dhcp_coarse_tmr(): t0 timeout\n"));
+        /* this clients' lease time has expired */
+        dhcp_release(netif);
+        dhcp_discover(netif);
       /* timer is active (non zero), and triggers (zeroes) now? */
-      if (netif->dhcp->t2_timeout-- == 1) {
+      } else if (netif->dhcp->t2_rebind_time-- == 1) {
         LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE | LWIP_DBG_STATE, ("dhcp_coarse_tmr(): t2 timeout\n"));
         /* this clients' rebind timeout triggered */
         dhcp_t2_timeout(netif);
       /* timer is active (non zero), and triggers (zeroes) now */
-      } else if (netif->dhcp->t1_timeout-- == 1) {
+      } else if (netif->dhcp->t1_renew_time-- == 1) {
         LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE | LWIP_DBG_STATE, ("dhcp_coarse_tmr(): t1 timeout\n"));
         /* this clients' renewal timeout triggered */
         dhcp_t1_timeout(netif);
@@ -448,23 +454,6 @@ dhcp_timeout(struct netif *netif)
       dhcp_bind(netif);
     }
 #endif /* DHCP_DOES_ARP_CHECK */
-  }
-  /* did not get response to renew request? */
-  else if (dhcp->state == DHCP_RENEWING) {
-    LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE | LWIP_DBG_STATE, ("dhcp_timeout(): RENEWING, DHCP request timed out\n"));
-    /* just retry renewal */
-    /* note that the rebind timer will eventually time-out if renew does not work */
-    dhcp_renew(netif);
-  /* did not get response to rebind request? */
-  } else if (dhcp->state == DHCP_REBINDING) {
-    LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE | LWIP_DBG_STATE, ("dhcp_timeout(): REBINDING, DHCP request timed out\n"));
-    if (dhcp->tries <= 8) {
-      dhcp_rebind(netif);
-    } else {
-      LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE | LWIP_DBG_STATE, ("dhcp_timeout(): RELEASING, DISCOVERING\n"));
-      dhcp_release(netif);
-      dhcp_discover(netif);
-    }
   } else if (dhcp->state == DHCP_REBOOTING) {
     if (dhcp->tries < REBOOT_TRIES) {
       dhcp_reboot(netif);
@@ -493,6 +482,11 @@ dhcp_t1_timeout(struct netif *netif)
     /* This slightly different to RFC2131: DHCPREQUEST will be sent from state
        DHCP_RENEWING, not DHCP_BOUND */
     dhcp_renew(netif);
+    /* Calculate next timeout */
+    if (((netif->dhcp->t2_timeout - dhcp->lease_used) / 2) >= ((60 + DHCP_COARSE_TIMER_SECS / 2) / DHCP_COARSE_TIMER_SECS))
+    {
+       netif->dhcp->t1_renew_time = ((netif->dhcp->t2_timeout - dhcp->lease_used) / 2);
+    }
   }
 }
 
@@ -507,13 +501,18 @@ dhcp_t2_timeout(struct netif *netif)
   struct dhcp *dhcp = netif->dhcp;
   LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE | LWIP_DBG_STATE, ("dhcp_t2_timeout()\n"));
   if ((dhcp->state == DHCP_REQUESTING) || (dhcp->state == DHCP_BOUND) ||
-      (dhcp->state == DHCP_RENEWING)) {
+      (dhcp->state == DHCP_RENEWING) || (dhcp->state == DHCP_REBINDING)) {
     /* just retry to rebind */
     LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE | LWIP_DBG_STATE,
                 ("dhcp_t2_timeout(): must rebind\n"));
     /* This slightly different to RFC2131: DHCPREQUEST will be sent from state
        DHCP_REBINDING, not DHCP_BOUND */
     dhcp_rebind(netif);
+    /* Calculate next timeout */
+    if (((netif->dhcp->t0_timeout - dhcp->lease_used) / 2) >= ((60 + DHCP_COARSE_TIMER_SECS / 2) / DHCP_COARSE_TIMER_SECS))
+    {
+       netif->dhcp->t2_rebind_time = ((netif->dhcp->t0_timeout - dhcp->lease_used) / 2);
+    }
   }
 }
 
@@ -559,8 +558,8 @@ dhcp_handle_ack(struct netif *netif)
     /* remember given rebind period */
     dhcp->offered_t2_rebind = dhcp_get_option_value(dhcp, DHCP_OPTION_IDX_T2);
   } else {
-    /* calculate safe periods for rebinding */
-    dhcp->offered_t2_rebind = dhcp->offered_t0_lease;
+    /* calculate safe periods for rebinding (offered_t0_lease * 0.875 -> 87.5%)*/
+    dhcp->offered_t2_rebind = (dhcp->offered_t0_lease * 7U) / 8U;
   }
 
   /* (y)our internet address */
@@ -966,6 +965,23 @@ dhcp_bind(struct netif *netif)
   LWIP_ERROR("dhcp_bind: dhcp != NULL", (dhcp != NULL), return;);
   LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE, ("dhcp_bind(netif=%p) %c%c%"U16_F"\n", (void*)netif, netif->name[0], netif->name[1], (u16_t)netif->num));
 
+  /* reset time used of lease */
+  dhcp->lease_used = 0;
+
+  if (dhcp->offered_t0_lease != 0xffffffffUL) {
+     /* set renewal period timer */
+     LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE, ("dhcp_bind(): t0 renewal timer %"U32_F" secs\n", dhcp->offered_t0_lease));
+     timeout = (dhcp->offered_t0_lease + DHCP_COARSE_TIMER_SECS / 2) / DHCP_COARSE_TIMER_SECS;
+     if(timeout > 0xffff) {
+       timeout = 0xffff;
+     }
+     dhcp->t0_timeout = (u16_t)timeout;
+     if (dhcp->t0_timeout == 0) {
+       dhcp->t0_timeout = 1;
+     }
+     LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE | LWIP_DBG_STATE, ("dhcp_bind(): set request timeout %"U32_F" msecs\n", dhcp->offered_t0_lease*1000));
+  }
+
   /* temporary DHCP lease? */
   if (dhcp->offered_t1_renew != 0xffffffffUL) {
     /* set renewal period timer */
@@ -979,6 +995,7 @@ dhcp_bind(struct netif *netif)
       dhcp->t1_timeout = 1;
     }
     LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE | LWIP_DBG_STATE, ("dhcp_bind(): set request timeout %"U32_F" msecs\n", dhcp->offered_t1_renew*1000));
+    dhcp->t1_renew_time = dhcp->t1_timeout;
   }
   /* set renewal period timer */
   if (dhcp->offered_t2_rebind != 0xffffffffUL) {
@@ -992,6 +1009,7 @@ dhcp_bind(struct netif *netif)
       dhcp->t2_timeout = 1;
     }
     LWIP_DEBUGF(DHCP_DEBUG | LWIP_DBG_TRACE | LWIP_DBG_STATE, ("dhcp_bind(): set request timeout %"U32_F" msecs\n", dhcp->offered_t2_rebind*1000));
+    dhcp->t2_rebind_time = dhcp->t2_timeout;
   }
 
   /* If we have sub 1 minute lease, t2 and t1 will kick in at the same time. */
diff --git a/src/include/lwip/dhcp.h b/src/include/lwip/dhcp.h
index 3526f036..04f9f30e 100644
--- a/src/include/lwip/dhcp.h
+++ b/src/include/lwip/dhcp.h
@@ -49,6 +49,10 @@ struct dhcp
   u16_t request_timeout; /* #ticks with period DHCP_FINE_TIMER_SECS for request timeout */
   u16_t t1_timeout;  /* #ticks with period DHCP_COARSE_TIMER_SECS for renewal time */
   u16_t t2_timeout;  /* #ticks with period DHCP_COARSE_TIMER_SECS for rebind time */
+  u16_t t1_renew_time;  /* #ticks with period DHCP_COARSE_TIMER_SECS until next renew try */
+  u16_t t2_rebind_time; /* #ticks with period DHCP_COARSE_TIMER_SECS until next rebind try */
+  u16_t lease_used; /* #ticks with period DHCP_COARSE_TIMER_SECS since last received DHCP ack */
+  u16_t t0_timeout; /* #ticks with period DHCP_COARSE_TIMER_SECS for lease time */
   ip_addr_t server_ip_addr; /* dhcp server address that offered this lease */
   ip_addr_t offered_ip_addr;
   ip_addr_t offered_sn_mask;
@@ -56,7 +60,7 @@ struct dhcp
  
   u32_t offered_t0_lease; /* lease period (in seconds) */
   u32_t offered_t1_renew; /* recommended renew time (usually 50% of lease period) */
-  u32_t offered_t2_rebind; /* recommended rebind time (usually 66% of lease period)  */
+  u32_t offered_t2_rebind; /* recommended rebind time (usually 87.5 of lease period)  */
 #if LWIP_DHCP_BOOTP_FILE
   ip_addr_t offered_si_addr;
   char boot_file_name[DHCP_FILE_LEN];
@@ -161,9 +165,9 @@ void dhcp_fine_tmr(void);
 #define DHCP_REBINDING    4
 #define DHCP_RENEWING     5
 #define DHCP_SELECTING    6
-/* not yet implemented #define DHCP_INFORMING    7*/
+#define DHCP_INFORMING    7
 #define DHCP_CHECKING     8
-/* not yet implemented #define DHCP_PERMANENT    9*/
+#define DHCP_PERMANENT    9
 #define DHCP_BOUND        10
 /** not yet implemented #define DHCP_RELEASING 11 */
 #define DHCP_BACKING_OFF  12