diff --git a/CHANGES b/CHANGES
index 6f64c1d0f4a..375a32c8eb9 100644
--- a/CHANGES
+++ b/CHANGES
@@ -43,6 +43,7 @@ Bugs fixed
 * #2351: latex crashes if enumerated lists are placed on footnotes
 * #2646: latex crashes if math contains twice empty lines
 * #2480: `sphinx.ext.autodoc`: memory addresses were shown
+* latex: allow one more nesting depth for code-blocks (ref #777, PR #2624)
 
 
 Release 1.4.3 (released Jun 5, 2016)
diff --git a/sphinx/texinputs/sphinx.sty b/sphinx/texinputs/sphinx.sty
index 27815a1d2b6..1649651e4ac 100644
--- a/sphinx/texinputs/sphinx.sty
+++ b/sphinx/texinputs/sphinx.sty
@@ -337,20 +337,19 @@
   % - if caption: vertical space above caption = (\abovecaptionskip + D) with
   %   D = \baselineskip-\FrameHeightAdjust, and then \smallskip above frame.
   % - if no caption: (\smallskip + D) above frame. By default D=6pt.
-  \list{}{%
-  \setlength\parskip{0pt}%
-  \setlength\itemsep{0ex}%
-  \setlength\topsep{0ex}%
-  \setlength\parsep{0pt}% let's not forget this one!
-  \setlength\partopsep{0pt}%
-  \setlength\leftmargin{0pt}%
-  }%
-  \item
+  % Use trivlist rather than list to avoid possible "too deeply nested" error.
+  \itemsep   \z@skip
+  \topsep    \z@skip
+  \partopsep \z@skip% trivlist will set \parsep to \parskip = zero (see above)
+  % \leftmargin will be set to zero by trivlist
+  \rightmargin\z@
+  \parindent  \z@% becomes \itemindent. Default zero, but perhaps overwritten.
+  \trivlist\item\relax
   % use a minipage if we are already inside a framed environment
-  \relax\ifSphinx@inframed\noindent\begin{minipage}{\linewidth}\fi
+     \ifSphinx@inframed\noindent\begin{minipage}{\linewidth}\fi
      \MakeFramed {% adapted over from framed.sty's snugshade environment
-    \advance\hsize-\width\@totalleftmargin\z@\linewidth\hsize
-    \@setminipage  }%
+     \advance\hsize-\width\@totalleftmargin\z@\linewidth\hsize
+     \@setminipage  }%
      \small
      % For grid placement from \strut's in \FancyVerbFormatLine
      \lineskip\z@skip
@@ -361,8 +360,7 @@
   \endOriginalVerbatim
   \par\unskip\@minipagefalse\endMakeFramed
   \ifSphinx@inframed\end{minipage}\fi
-  \endlist
-  % LaTeX environments always revert local changes on exit, here e.g. \parskip
+  \endtrivlist
 }
 
 % define macro to frame contents and add shadow on right and bottom