diff --git a/gnovm/pkg/gnolang/preprocess.go b/gnovm/pkg/gnolang/preprocess.go
index ee943226c85..a4576fa6f48 100644
--- a/gnovm/pkg/gnolang/preprocess.go
+++ b/gnovm/pkg/gnolang/preprocess.go
@@ -118,18 +118,6 @@ var preprocessing int
 //   - Assigns BlockValuePath to NameExprs.
 //   - TODO document what it does.
 func Preprocess(store Store, ctx BlockNode, n Node) Node {
-	// When panic, revert any package updates.
-	defer func() {
-		// Revert all new values.
-		// this is needed to revert top level
-		// function redeclarations.
-		if r := recover(); r != nil {
-			pkg := packageOf(ctx)
-			pkg.StaticBlock.revertToOld()
-			panic(r)
-		}
-	}()
-
 	// Increment preprocessing counter while preprocessing.
 	{
 		preprocessing += 1
@@ -2933,7 +2921,7 @@ func predefineNow2(store Store, last BlockNode, d Decl, m map[Name]struct{}) (De
 			} else {
 				dt = rt.(*DeclaredType)
 			}
-			dt.DefineMethod(&FuncValue{
+			if !dt.TryDefineMethod(&FuncValue{
 				Type:       ft,
 				IsMethod:   true,
 				Source:     cd,
@@ -2943,7 +2931,13 @@ func predefineNow2(store Store, last BlockNode, d Decl, m map[Name]struct{}) (De
 				PkgPath:    pkg.PkgPath,
 				body:       cd.Body,
 				nativeBody: nil,
-			})
+			}) {
+				// Revert to old function declarations in the package we're preprocessing.
+				pkg := packageOf(last)
+				pkg.StaticBlock.revertToOld()
+				panic(fmt.Sprintf("redeclaration of method %s.%s",
+					dt.Name, cd.Name))
+			}
 		} else {
 			ftv := pkg.GetValueRef(store, cd.Name)
 			ft := ftv.T.(*FuncType)
diff --git a/gnovm/pkg/gnolang/types.go b/gnovm/pkg/gnolang/types.go
index 65bf7227458..34565b7a1b6 100644
--- a/gnovm/pkg/gnolang/types.go
+++ b/gnovm/pkg/gnolang/types.go
@@ -1451,43 +1451,53 @@ func (dt *DeclaredType) GetPkgPath() string {
 }
 
 func (dt *DeclaredType) DefineMethod(fv *FuncValue) {
+	if !dt.TryDefineMethod(fv) {
+		panic(fmt.Sprintf("redeclaration of method %s.%s",
+			dt.Name, fv.Name))
+	}
+}
+
+// TryDefineMethod attempts to define the method fv on type dt.
+// It returns false if this does not succeeds, as a result of a re-declaration.
+func (dt *DeclaredType) TryDefineMethod(fv *FuncValue) bool {
 	name := fv.Name
 
 	// Handle redeclarations.
 	for i, tv := range dt.Methods {
 		ofv := tv.V.(*FuncValue)
-		if ofv.Name == name {
-			// Do not allow redeclaring (override) a method.
-			// In the future we may allow this, just like we
-			// allow package-level function overrides.
-
-			// Special case: if the type and location are the same,
-			// ignore and do not redefine.
-			// This is due to PreprocessAllFilesAndSaveBlocknodes,
-			// and because the preprocessor fills some of the
-			// method's FuncValue. Since the method was already
-			// filled in prior to PreprocessAllFilesAndSaveBlocks,
-			// there is no need to re-set it.
-			// Keep this or move this check outside.
-			if fv.Type.TypeID() == ofv.Type.TypeID() &&
-				fv.Source.GetLocation() == ofv.Source.GetLocation() {
-				return
-			}
+		if ofv.Name != name {
+			continue
+		}
 
-			// Special case: allow defining a native body.
-			if fv.Type.TypeID() == ofv.Type.TypeID() &&
-				!ofv.IsNative() && fv.IsNative() {
-				dt.Methods[i] = TypedValue{
-					T: fv.Type, // keep old type.
-					V: fv,
-				}
-				return
-			}
+		// Do not allow redeclaring (override) a method.
+		// In the future we may allow this, just like we
+		// allow package-level function overrides.
+
+		// Special case: if the type and location are the same,
+		// ignore and do not redefine.
+		// This is due to PreprocessAllFilesAndSaveBlocknodes,
+		// and because the preprocessor fills some of the
+		// method's FuncValue. Since the method was already
+		// filled in prior to PreprocessAllFilesAndSaveBlocks,
+		// there is no need to re-set it.
+		// Keep this or move this check outside.
+		if fv.Type.TypeID() == ofv.Type.TypeID() &&
+			fv.Source.GetLocation() == ofv.Source.GetLocation() {
+			return true
+		}
 
-			// Otherwise panic.
-			panic(fmt.Sprintf("redeclaration of method %s.%s",
-				dt.Name, name))
+		// Special case: allow defining a native body.
+		if fv.Type.TypeID() == ofv.Type.TypeID() &&
+			!ofv.IsNative() && fv.IsNative() {
+			dt.Methods[i] = TypedValue{
+				T: fv.Type, // keep old type.
+				V: fv,
+			}
+			return true
 		}
+
+		// Otherwise fail and return false.
+		return false
 	}
 
 	// If not redeclaring, just append.
@@ -1495,6 +1505,7 @@ func (dt *DeclaredType) DefineMethod(fv *FuncValue) {
 		T: fv.Type,
 		V: fv,
 	})
+	return true
 }
 
 func (dt *DeclaredType) GetPathForName(n Name) ValuePath {