diff --git a/src/core/processing/qgsprocessingutils.cpp b/src/core/processing/qgsprocessingutils.cpp
index 9efaef673dc3..f0194fe68a2b 100644
--- a/src/core/processing/qgsprocessingutils.cpp
+++ b/src/core/processing/qgsprocessingutils.cpp
@@ -798,7 +798,11 @@ QgsFeatureSink *QgsProcessingUtils::createFeatureSink( QString &destination, Qgs
 
         // use destination string as layer name (eg "postgis:..." )
         if ( !layerName.isEmpty() )
-          uri += QStringLiteral( "|layername=%1" ).arg( layerName );
+        {
+          QVariantMap parts = QgsProviderRegistry::instance()->decodeUri( providerKey, uri );
+          parts.insert( QStringLiteral( "layerName" ), layerName );
+          uri = QgsProviderRegistry::instance()->encodeUri( providerKey, parts );
+        }
 
         std::unique_ptr< QgsVectorLayer > layer = qgis::make_unique<QgsVectorLayer>( uri, destination, providerKey, layerOptions );
         // update destination to layer ID
@@ -829,11 +833,9 @@ QgsFeatureSink *QgsProcessingUtils::createFeatureSink( QString &destination, Qgs
         // use destination string as layer name (eg "postgis:..." )
         if ( !layerName.isEmpty() )
           uri += QStringLiteral( "|layername=%1" ).arg( layerName );
-        std::unique_ptr< QgsVectorLayer > layer = qgis::make_unique<QgsVectorLayer>( uri, destination, providerKey, layerOptions );
-        // update destination to layer ID
-        destination = layer->id();
+        // update destination to generated URI
+        destination = uri;
 
-        context.temporaryLayerStore()->addMapLayer( layer.release() );
         return new QgsProcessingFeatureSink( exporter.release(), destination, context, true );
       }
     }
diff --git a/tests/src/analysis/testqgsprocessing.cpp b/tests/src/analysis/testqgsprocessing.cpp
index 8c5fbdb29941..a4dc01d23792 100644
--- a/tests/src/analysis/testqgsprocessing.cpp
+++ b/tests/src/analysis/testqgsprocessing.cpp
@@ -1958,6 +1958,7 @@ void TestQgsProcessing::createFeatureSink()
   destination = QStringLiteral( "ogr:dbname='%1' table=\"polygons\" (geom) sql=" ).arg( geopackagePath );
   sink.reset( QgsProcessingUtils::createFeatureSink( destination, context, fields, QgsWkbTypes::Polygon, QgsCoordinateReferenceSystem::fromEpsgId( 3111 ) ) );
   QVERIFY( sink.get() );
+  QCOMPARE( destination, QStringLiteral( "%1|layername=polygons" ).arg( geopackagePath ) );
   f = QgsFeature( fields );
   f.setGeometry( QgsGeometry::fromWkt( QStringLiteral( "Polygon((0 0, 0 1, 1 1, 1 0, 0 0 ))" ) ) );
   f.setAttributes( QgsAttributes() << "val" );
@@ -1973,6 +1974,7 @@ void TestQgsProcessing::createFeatureSink()
   QString destination2 = QStringLiteral( "ogr:dbname='%1' table=\"points\" (geom) sql=" ).arg( geopackagePath );
   sink.reset( QgsProcessingUtils::createFeatureSink( destination2, context, fields, QgsWkbTypes::Point, QgsCoordinateReferenceSystem::fromEpsgId( 3111 ) ) );
   QVERIFY( sink.get() );
+  QCOMPARE( destination2, QStringLiteral( "%1|layername=points" ).arg( geopackagePath ) );
   f = QgsFeature( fields );
   f.setGeometry( QgsGeometry::fromWkt( QStringLiteral( "Point(0 0)" ) ) );
   f.setAttributes( QgsAttributes() << "val2" );