diff --git a/ChangeLog b/ChangeLog
index 7fcc4c61..65f2c86f 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -6,6 +6,7 @@ terminator 0.96:
   * Optimise various low level components so they are dramatically
 	  faster (Stephen Boddy)
   * Fix various bugs (Stephen Boddy)
+	* Fix cursor colours (#700969) and a cursor blink issue (Tony Baker)
 
 terminator 0.95:
   * Add a configuration option to enable a DBus server
diff --git a/terminatorlib/terminal.py b/terminatorlib/terminal.py
index 72ea1bf9..940dbd23 100755
--- a/terminatorlib/terminal.py
+++ b/terminatorlib/terminal.py
@@ -605,7 +605,14 @@ for %s (%s)' % (name, urlplugin.__class__.__name__))
             if color:
                 palette.append(gtk.gdk.color_parse(color))
         self.vte.set_colors(fgcolor, bgcolor, palette)
-        if self.config['cursor_color'] != '':
+        if self.config['cursor_color'] == self.config['foreground_color']:
+            try:
+                self.vte.set_color_cursor(None) 
+            except TypeError:
+                # FIXME: I think this is only necessary because of
+                # https://bugzilla.gnome.org/show_bug.cgi?id=614910
+                pass
+        elif self.config['cursor_color'] != '':
             self.vte.set_color_cursor(gtk.gdk.color_parse(
                                         self.config['cursor_color']))
         if hasattr(self.vte, 'set_cursor_shape'):
@@ -665,7 +672,13 @@ for %s (%s)' % (name, urlplugin.__class__.__name__))
             dbg('setting background_transparent=False')
             self.vte.set_background_transparent(False)
 
-        self.vte.set_cursor_blinks(self.config['cursor_blink'])
+        if hasattr(vte, 'VVVVTE_CURSOR_BLINK_ON'):
+            if self.config['cursor_blink'] == True:
+                self.vte.set_cursor_blink_mode('VTE_CURSOR_BLINK_ON')
+            else:
+                self.vte.set_cursor_blink_mode('VTE_CURSOR_BLINK_OFF')
+        else:
+            self.vte.set_cursor_blinks(self.config['cursor_blink'])
 
         if self.config['force_no_bell'] == True:
             self.vte.set_audible_bell(False)