diff --git a/packages/sanity/src/_internal/cli/actions/build/buildAction.ts b/packages/sanity/src/_internal/cli/actions/build/buildAction.ts
index abdf91d3100..62b9b8fe8d2 100644
--- a/packages/sanity/src/_internal/cli/actions/build/buildAction.ts
+++ b/packages/sanity/src/_internal/cli/actions/build/buildAction.ts
@@ -16,6 +16,7 @@ import {BuildTrace} from './build.telemetry'
 import {buildVendorDependencies} from '../../server/buildVendorDependencies'
 import {compareStudioDependencyVersions} from '../../util/compareStudioDependencyVersions'
 import {getAutoUpdateImportMap} from '../../util/getAutoUpdatesImportMap'
+import {shouldAutoUpdate} from '../../util/shouldAutoUpdate'
 
 const rimraf = promisify(rimrafCallback)
 
@@ -58,9 +59,7 @@ export default async function buildSanityStudio(
     return {didCompile: false}
   }
 
-  const autoUpdatesEnabled =
-    flags['auto-updates'] ||
-    (cliConfig && 'autoUpdates' in cliConfig && cliConfig.autoUpdates === true)
+  const autoUpdatesEnabled = shouldAutoUpdate({flags, cliConfig})
 
   // Get the version without any tags if any
   const coercedSanityVersion = semver.coerce(installedSanityVersion)?.version
diff --git a/packages/sanity/src/_internal/cli/actions/deploy/deployAction.ts b/packages/sanity/src/_internal/cli/actions/deploy/deployAction.ts
index 5a773d52b71..364aec55735 100644
--- a/packages/sanity/src/_internal/cli/actions/deploy/deployAction.ts
+++ b/packages/sanity/src/_internal/cli/actions/deploy/deployAction.ts
@@ -5,6 +5,7 @@ import zlib from 'node:zlib'
 import {type CliCommandArguments, type CliCommandContext} from '@sanity/cli'
 import tar from 'tar-fs'
 
+import {shouldAutoUpdate} from '../../util/shouldAutoUpdate'
 import buildSanityStudio, {type BuildSanityStudioCommandFlags} from '../build/buildAction'
 import {
   checkDir,
@@ -29,10 +30,8 @@ export default async function deployStudioAction(
   const flags = {build: true, ...args.extOptions}
   const customSourceDir = args.argsWithoutOptions[0]
   const sourceDir = path.resolve(process.cwd(), customSourceDir || path.join(workDir, 'dist'))
-  const isAutoUpdating =
-    flags['auto-updates'] ||
-    (cliConfig && 'autoUpdates' in cliConfig && cliConfig.autoUpdates === true) ||
-    false
+  const isAutoUpdating = shouldAutoUpdate({flags, cliConfig})
+
   const installedSanityVersion = await getInstalledSanityVersion()
   const configStudioHost = cliConfig && 'studioHost' in cliConfig && cliConfig.studioHost
 
diff --git a/packages/sanity/src/_internal/cli/util/__tests__/shouldAutoUpdate.test.ts b/packages/sanity/src/_internal/cli/util/__tests__/shouldAutoUpdate.test.ts
new file mode 100644
index 00000000000..5084ab44953
--- /dev/null
+++ b/packages/sanity/src/_internal/cli/util/__tests__/shouldAutoUpdate.test.ts
@@ -0,0 +1,40 @@
+import {describe, expect, it} from '@jest/globals'
+import {type CliConfig} from '@sanity/cli'
+
+import {type BuildSanityStudioCommandFlags} from '../../actions/build/buildAction'
+import {shouldAutoUpdate} from '../shouldAutoUpdate'
+
+describe('shouldAutoUpdate', () => {
+  it('should return true when flags["auto-updates"] is true', () => {
+    const flags: BuildSanityStudioCommandFlags = {'auto-updates': true}
+    expect(shouldAutoUpdate({flags})).toBe(true)
+  })
+
+  it('should return false when flags["auto-updates"] is false', () => {
+    const flags: BuildSanityStudioCommandFlags = {'auto-updates': false}
+    expect(shouldAutoUpdate({flags})).toBe(false)
+  })
+
+  it('should return true when cliConfig.autoUpdates is true and flags["auto-updates"] is not set', () => {
+    const flags: BuildSanityStudioCommandFlags = {}
+    const cliConfig: CliConfig = {autoUpdates: true}
+    expect(shouldAutoUpdate({flags, cliConfig})).toBe(true)
+  })
+
+  it('should return false when cliConfig.autoUpdates is false and flags["auto-updates"] is not set', () => {
+    const flags: BuildSanityStudioCommandFlags = {}
+    const cliConfig: CliConfig = {autoUpdates: false}
+    expect(shouldAutoUpdate({flags, cliConfig})).toBe(false)
+  })
+
+  it('should return false when both flags["auto-updates"] and cliConfig.autoUpdates are not set', () => {
+    const flags: BuildSanityStudioCommandFlags = {}
+    expect(shouldAutoUpdate({flags})).toBe(false)
+  })
+
+  it('should prioritize flags over cliConfig when both are set', () => {
+    const flags: BuildSanityStudioCommandFlags = {'auto-updates': false}
+    const cliConfig: CliConfig = {autoUpdates: true}
+    expect(shouldAutoUpdate({flags, cliConfig})).toBe(false)
+  })
+})
diff --git a/packages/sanity/src/_internal/cli/util/shouldAutoUpdate.ts b/packages/sanity/src/_internal/cli/util/shouldAutoUpdate.ts
new file mode 100644
index 00000000000..2c6d547af1f
--- /dev/null
+++ b/packages/sanity/src/_internal/cli/util/shouldAutoUpdate.ts
@@ -0,0 +1,27 @@
+import {type CliConfig} from '@sanity/cli'
+
+import {type BuildSanityStudioCommandFlags} from '../actions/build/buildAction'
+
+interface AutoUpdateSources {
+  flags: BuildSanityStudioCommandFlags
+  cliConfig?: CliConfig
+}
+
+/**
+ * Compares parameters from various sources to determine whether or not to auto-update
+ * @param sources - The sources of the auto-update parameter, including CLI flags and the CLI config
+ * @returns boolean
+ * @internal
+ */
+export function shouldAutoUpdate({flags, cliConfig}: AutoUpdateSources): boolean {
+  // cli flags (for example, '--no-auto-updates') should take precedence
+  if ('auto-updates' in flags) {
+    return Boolean(flags['auto-updates'])
+  }
+
+  if (cliConfig && 'autoUpdates' in cliConfig) {
+    return Boolean(cliConfig.autoUpdates)
+  }
+
+  return false
+}