diff --git a/lua/neogen/configurations/python.lua b/lua/neogen/configurations/python.lua
index 72d20c4..b608c93 100644
--- a/lua/neogen/configurations/python.lua
+++ b/lua/neogen/configurations/python.lua
@@ -12,6 +12,32 @@ local parent = {
     type = { "expression_statement" },
 }
 
+
+--- Check `node` for the first parent matching `type_name`.
+---
+--- This function is *inclusive*. It tests `node` before checking any parent so
+--- `node` is a possible return value.
+---
+---@param node TSNode A tree-sitter node to check for some parent.
+---@param type_name string The tree-sitter type to check. e.g. `"function_definition"`.
+---@return TSNode? # The found node, if any.
+local get_nearest_parent = function(node, type_name)
+    local current = node
+
+    while current ~= nil
+    do
+        if current:type() == type_name
+        then
+            return current
+        end
+
+        current = current:parent()
+    end
+
+    return nil
+end
+
+
 --- Modify `nodes` if the found return(s) are **all** bare-returns.
 ---
 --- A bare-return is used to return early from a function and aren't meant to be
@@ -19,13 +45,13 @@ local parent = {
 ---
 --- If at least one return is not a bare-return then this function does nothing.
 ---
----@param nodes table
+---@param nodes table<string, TSNode[]>
 local validate_bare_returns = function(nodes)
-    local return_node = nodes[i.Return]
+    local return_nodes = nodes[i.Return]
     local has_data = false
 
-    for _, value in pairs(return_node) do
-        if value:child_count() > 1
+    for _, node in pairs(return_nodes) do
+        if node:child_count() > 1
         then
             has_data = true
         end
@@ -38,6 +64,30 @@ local validate_bare_returns = function(nodes)
 end
 
 
+--- Check if any of ``nodes`` has ``parent`` as a direct function parent.
+---
+---@param nodes table<string, TSNode[]>
+---    The extracted tree-sitter Return nodes to consider. If at least one
+---    found return has `parent` then this function does nothing. But if
+---    no `parent` is found then neogen ignores return annotations.
+---@param parent TSNode
+---    The direct function to check for. If there is any function_definition
+---    between each node in `nodes` and this `parent` then we consider that node
+---    "ignorable".
+local validate_direct_returns = function(nodes, parent)
+    local return_nodes = nodes[i.Return]
+
+    for _, node in pairs(return_nodes) do
+        if get_nearest_parent(node, "function_definition") == parent
+        then
+            return
+        end
+    end
+
+    nodes[i.Return] = nil
+end
+
+
 --- Remove `i.Return` details from `nodes` if a Python generator was found.
 ---
 --- If there is at least one `yield` found, Python converts the function to a generator.
@@ -178,6 +228,7 @@ return {
 
                         if nodes[i.Return] then
                             validate_bare_returns(nodes)
+                            validate_direct_returns(nodes, node)
                         end
 
                         validate_yield_nodes(nodes)
@@ -217,27 +268,27 @@ return {
                         end
 
                         local results = helpers.copy({
-                                [i.HasParameter] = function(t)
-                                    return (t[i.Parameter] or t[i.Tparam]) and { true }
-                                end,
-                                [i.HasReturn] = function(t)
-                                    return (t[i.ReturnTypeHint] or t[i.Return]) and { true }
-                                end,
-                                [i.HasThrow] = function(t)
-                                    return t[i.Throw] and { true }
-                                end,
-                                [i.Type] = true,
-                                [i.Parameter] = true,
-                                [i.Return] = true,
-                                [i.ReturnTypeHint] = true,
-                                [i.HasYield] = function(t)
-                                    return t[i.Yield] and { true }
-                                end,
-                                [i.ArbitraryArgs] = true,
-                                [i.Kwargs] = true,
-                                [i.Throw] = true,
-                                [i.Tparam] = true,
-                            }, res) or {}
+                            [i.HasParameter] = function(t)
+                                return (t[i.Parameter] or t[i.Tparam]) and { true }
+                            end,
+                            [i.HasReturn] = function(t)
+                                return (t[i.ReturnTypeHint] or t[i.Return]) and { true }
+                            end,
+                            [i.HasThrow] = function(t)
+                                return t[i.Throw] and { true }
+                            end,
+                            [i.Type] = true,
+                            [i.Parameter] = true,
+                            [i.Return] = true,
+                            [i.ReturnTypeHint] = true,
+                            [i.HasYield] = function(t)
+                                return t[i.Yield] and { true }
+                            end,
+                            [i.ArbitraryArgs] = true,
+                            [i.Kwargs] = true,
+                            [i.Throw] = true,
+                            [i.Tparam] = true,
+                        }, res) or {}
 
                         -- Removes generation for returns that are not typed
                         if results[i.ReturnTypeHint] then
diff --git a/lua/neogen/init.lua b/lua/neogen/init.lua
index a3eb079..3a41707 100644
--- a/lua/neogen/init.lua
+++ b/lua/neogen/init.lua
@@ -301,7 +301,7 @@ end
 ---     with multiple annotation conventions.
 ---@tag neogen-changelog
 ---@toc_entry Changes in neogen plugin
-neogen.version = "2.16.0"
+neogen.version = "2.16.1"
 --minidoc_afterlines_end
 
 return neogen