diff --git a/src/modules/mavlink/mavlink_messages.cpp b/src/modules/mavlink/mavlink_messages.cpp
index 844d2d5c08..0e92dc1177 100644
--- a/src/modules/mavlink/mavlink_messages.cpp
+++ b/src/modules/mavlink/mavlink_messages.cpp
@@ -2548,13 +2548,23 @@ protected:
 
 		if (_mavlink->odometry_loopback_enabled()) {
 			odom_updated = _vodom_sub.update(&odom);
-			msg.frame_id = MAV_FRAME_LOCAL_NED;
+
+			// set the frame_id according to the local frame of the data
+			if (odom.local_frame == vehicle_odometry_s::LOCAL_FRAME_NED) {
+				msg.frame_id = MAV_FRAME_LOCAL_NED;
+
+			} else {
+				msg.frame_id = MAV_FRAME_LOCAL_FRD;
+			}
+
 			// source: external vision system
 			msg.estimator_type = MAV_ESTIMATOR_TYPE_VISION;
 
 		} else {
 			odom_updated = _odom_sub.update(&odom);
+
 			msg.frame_id = MAV_FRAME_LOCAL_NED;
+
 			// source: PX4 estimator
 			msg.estimator_type = MAV_ESTIMATOR_TYPE_AUTOPILOT;
 		}
diff --git a/src/modules/mavlink/mavlink_receiver.cpp b/src/modules/mavlink/mavlink_receiver.cpp
index e14839b98f..5e42484ec7 100644
--- a/src/modules/mavlink/mavlink_receiver.cpp
+++ b/src/modules/mavlink/mavlink_receiver.cpp
@@ -1309,8 +1309,6 @@ MavlinkReceiver::handle_message_odometry(mavlink_message_t *msg)
 	q_body_to_local.normalize();
 	q_body_to_local.copyTo(odometry.q);
 
-	odometry.local_frame = vehicle_odometry_s::LOCAL_FRAME_FRD;
-
 	// pose_covariance
 	static constexpr size_t POS_URT_SIZE = sizeof(odometry.pose_covariance) / sizeof(odometry.pose_covariance[0]);
 	static_assert(POS_URT_SIZE == (sizeof(odom.pose_covariance) / sizeof(odom.pose_covariance[0])),
@@ -1361,6 +1359,14 @@ MavlinkReceiver::handle_message_odometry(mavlink_message_t *msg)
 	 * with true North
 	 */
 	if (odom.frame_id == MAV_FRAME_LOCAL_NED || odom.frame_id == MAV_FRAME_LOCAL_FRD) {
+
+		if (odom.frame_id == MAV_FRAME_LOCAL_NED) {
+			odometry.local_frame = vehicle_odometry_s::LOCAL_FRAME_NED;
+
+		} else {
+			odometry.local_frame = vehicle_odometry_s::LOCAL_FRAME_FRD;
+		}
+
 		if (odom.estimator_type == MAV_ESTIMATOR_TYPE_VISION || odom.estimator_type == MAV_ESTIMATOR_TYPE_VIO) {
 			_visual_odometry_pub.publish(odometry);
 
diff --git a/src/modules/simulator/simulator_mavlink.cpp b/src/modules/simulator/simulator_mavlink.cpp
index 3de3928023..47ed1f5dbc 100644
--- a/src/modules/simulator/simulator_mavlink.cpp
+++ b/src/modules/simulator/simulator_mavlink.cpp
@@ -1037,7 +1037,12 @@ int Simulator::publish_odometry_topic(const mavlink_message_t *odom_mavlink)
 		matrix::Quatf q(odom_msg.q[0], odom_msg.q[1], odom_msg.q[2], odom_msg.q[3]);
 		q.copyTo(odom.q);
 
-		odom.local_frame = vehicle_odometry_s::LOCAL_FRAME_FRD;
+		if (odom_msg.frame_id == MAV_FRAME_LOCAL_NED) {
+			odom.local_frame = vehicle_odometry_s::LOCAL_FRAME_NED;
+
+		} else {
+			odom.local_frame = vehicle_odometry_s::LOCAL_FRAME_FRD;
+		}
 
 		static_assert(POS_URT_SIZE == (sizeof(odom_msg.pose_covariance) / sizeof(odom_msg.pose_covariance[0])),
 			      "Odometry Pose Covariance matrix URT array size mismatch");