diff --git a/src/Rules/Variables/ParameterOutAssignedTypeRule.php b/src/Rules/Variables/ParameterOutAssignedTypeRule.php
index 30661636fd..e08d953d87 100644
--- a/src/Rules/Variables/ParameterOutAssignedTypeRule.php
+++ b/src/Rules/Variables/ParameterOutAssignedTypeRule.php
@@ -12,6 +12,7 @@
 use PHPStan\Rules\RuleLevelHelper;
 use PHPStan\Type\ErrorType;
 use PHPStan\Type\Type;
+use PHPStan\Type\TypeUtils;
 use PHPStan\Type\VerbosityLevel;
 use function is_string;
 use function sprintf;
@@ -75,6 +76,8 @@ public function processNode(Node $node, Scope $scope): array
 			$outType = $foundParameter->getType();
 		}
 
+		$outType = TypeUtils::resolveLateResolvableTypes($outType);
+
 		$typeResult = $this->ruleLevelHelper->findTypeToCheck(
 			$scope,
 			$node->getAssignedExpr(),
diff --git a/src/Rules/Variables/ParameterOutExecutionEndTypeRule.php b/src/Rules/Variables/ParameterOutExecutionEndTypeRule.php
index 8638f0aae8..bb8865ce33 100644
--- a/src/Rules/Variables/ParameterOutExecutionEndTypeRule.php
+++ b/src/Rules/Variables/ParameterOutExecutionEndTypeRule.php
@@ -16,6 +16,7 @@
 use PHPStan\Rules\RuleLevelHelper;
 use PHPStan\Type\ErrorType;
 use PHPStan\Type\Type;
+use PHPStan\Type\TypeUtils;
 use PHPStan\Type\VerbosityLevel;
 use function sprintf;
 
@@ -81,6 +82,8 @@ private function processSingleParameter(
 			return [];
 		}
 
+		$outType = TypeUtils::resolveLateResolvableTypes($outType);
+
 		$variableExpr = new Node\Expr\Variable($parameter->getName());
 		$typeResult = $this->ruleLevelHelper->findTypeToCheck(
 			$scope,
diff --git a/tests/PHPStan/Rules/Variables/data/parameter-out-execution-end.php b/tests/PHPStan/Rules/Variables/data/parameter-out-execution-end.php
index 5f0a138225..6f55e987cc 100644
--- a/tests/PHPStan/Rules/Variables/data/parameter-out-execution-end.php
+++ b/tests/PHPStan/Rules/Variables/data/parameter-out-execution-end.php
@@ -83,3 +83,24 @@ function foo2(?string &$p): void {
 
 	}
 }
+
+class Bug10699
+{
+
+	/**
+	 * @param int $flags
+	 * @param 10|20 $out
+	 *
+	 * @param-out ($flags is 2 ? 20 : 10) $out
+	 */
+	function test2(int $flags, int &$out): void
+	{
+		if ($flags === 2) {
+			$out = 20;
+			return;
+		}
+
+
+	}
+
+}