diff --git a/grayskull/strategy/pypi.py b/grayskull/strategy/pypi.py
index 1bed893b7..8fb43d114 100644
--- a/grayskull/strategy/pypi.py
+++ b/grayskull/strategy/pypi.py
@@ -347,9 +347,14 @@ def get_metadata(recipe, config) -> dict:
     """Method responsible to get the whole metadata available. It will
     merge metadata from multiple sources (pypi, setup.py, setup.cfg)
     """
-    name = config.name
     sdist_metadata, pypi_metadata = get_origin_wise_metadata(config)
     metadata = merge_pypi_sdist_metadata(pypi_metadata, sdist_metadata, config)
+    if config.from_local_sdist:
+        # Overwrite package name from sdist filename with name from metadata
+        # sdist filename is normalized by setuptools since version 69.3.0
+        # See https://github.com/pypa/setuptools/issues/3593
+        config.name = metadata["name"]
+    name = config.name
     log.debug(f"Data merged from pypi, setup.cfg and setup.py: {metadata}")
     if metadata.get("scripts") is not None:
         config.is_arch = True
@@ -505,6 +510,9 @@ def update_recipe(recipe: Recipe, config: Configuration, all_sections: List[str]
             if section == "package":
                 package_metadata = dict(metadata[section])
                 if package_metadata["name"].lower() == config.name.lower():
+                    if config.from_local_sdist:
+                        # Initial name set in the recipe came from the sdist filename
+                        set_global_jinja_var(recipe, "name", package_metadata["name"])
                     package_metadata.pop("name")
                 else:
                     package_metadata["name"] = package_metadata["name"].replace(
diff --git a/tests/conftest.py b/tests/conftest.py
index 9556de8fc..429f65043 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -15,7 +15,9 @@ def data_dir() -> str:
 @fixture(scope="session")
 def pkg_pytest(tmpdir_factory) -> str:
     folder = tmpdir_factory.mktemp("test-download-pkg")
-    dest_pkg = str(folder / "PYTEST-PKG.tar.gz")
+    # Use different package name and version for the sdist archive on purpose
+    # Correct info should be extracted from the metadata and not filename
+    dest_pkg = str(folder / "PYTEST-PKG-1.0.0.tar.gz")
     download_sdist_pkg(
         "https://pypi.io/packages/source/p/pytest/pytest-5.3.5.tar.gz", dest_pkg
     )
diff --git a/tests/test_pypi.py b/tests/test_pypi.py
index 1564ee152..2b04ce725 100644
--- a/tests/test_pypi.py
+++ b/tests/test_pypi.py
@@ -6,6 +6,7 @@
 
 import pytest
 from colorama import Fore, Style
+from souschef.jinja_expression import get_global_jinja_var
 from souschef.recipe import Recipe
 
 from grayskull.base.factory import GrayskullFactory
@@ -1257,6 +1258,8 @@ def test_create_recipe_from_local_sdist(pkg_pytest):
     assert recipe["about"]["summary"] == "pytest: simple powerful testing with Python"
     assert recipe["about"]["license"] == "MIT"
     assert recipe["about"]["license_file"] == "LICENSE"
+    assert get_global_jinja_var(recipe, "name") == "pytest"
+    assert get_global_jinja_var(recipe, "version") == "5.3.5"
 
 
 @patch("grayskull.strategy.py_base.get_all_toml_info", return_value={})