diff -r -u freeciv/server/settlers.c smart_settlers/server/settlers.c
--- freeciv/server/settlers.c	Mon Mar  6 23:08:41 2000
+++ smart_settlers/server/settlers.c	Wed Mar  8 14:20:25 2000
@@ -48,7 +48,7 @@
 
 static int is_already_assigned(struct unit *myunit, struct player *pplayer, 
 			       int x, int y);
-
+int adjacent_city_exists(int x, int y);
 /**************************************************************************
 ...
 **************************************************************************/
@@ -1043,7 +1043,8 @@
 	    && map_get_terrain(x, y) != T_OCEAN
 	    && (territory[x][y]&(1<<player_num))
 				/* pretty good, hope it's enough! -- Syela */
-            && (near < 8 || map_get_continent(x, y) != ucont)) {
+            && (near < 8 || map_get_continent(x, y) != ucont)
+	    && !adjacent_city_exists(x,y)) {
 
 	  /* potential target, calculate mv_cost: */
           if (ferryboat) {
@@ -1428,4 +1429,15 @@
     unit_list_iterate_end;
     pcity->ai.founder_want = want;
   }
+}
+
+int adjacent_city_exists(int x, int y) /*little local helper function*/
+{
+  int xitr, yitr;
+  for (xitr = x-2; xitr <= x+2; xitr++)
+    for (yitr = y-2; yitr <= y+2; yitr++)
+      if (!(xitr == x && yitr == y))
+	if (map_get_city(xitr,yitr))
+	  return 1;
+  return 0;
 }