diff --git a/lib/datadog/tracing/configuration/settings.rb b/lib/datadog/tracing/configuration/settings.rb
index 332ed8962a2..01f586913fc 100644
--- a/lib/datadog/tracing/configuration/settings.rb
+++ b/lib/datadog/tracing/configuration/settings.rb
@@ -96,7 +96,7 @@ def self.extended(base)
                 # Note: Alias (DD_TRACE_PROPAGATION_STYLE) defined in supported-configurations.json
                 o.env Configuration::Ext::Distributed::ENV_PROPAGATION_STYLE
                 o.default []
-                o.after_set do |styles|
+                o.after_set do |styles, _, precedence|
                   next if styles.empty?
 
                   # Make values case-insensitive
@@ -110,8 +110,8 @@ def self.extended(base)
                       false
                     end
                   end
-                  set_option(:propagation_style_extract, styles)
-                  set_option(:propagation_style_inject, styles)
+                  set_option(:propagation_style_extract, styles, precedence: precedence)
+                  set_option(:propagation_style_inject, styles, precedence: precedence)
                 end
               end
 
diff --git a/spec/datadog/tracing/configuration/settings_spec.rb b/spec/datadog/tracing/configuration/settings_spec.rb
index 762d46a87f0..44283faff86 100644
--- a/spec/datadog/tracing/configuration/settings_spec.rb
+++ b/spec/datadog/tracing/configuration/settings_spec.rb
@@ -191,10 +191,12 @@ def propagation_style_inject
 
           it 'sets propagation_style_extract' do
             expect { propagation_style }.to change { propagation_style_extract }.to(%w[b3multi b3])
+            expect(settings.tracing.send(:resolve_option, :propagation_style_extract).precedence_set).to eq(Datadog::Core::Configuration::Option::Precedence::ENVIRONMENT)
           end
 
           it 'sets propagation_style_inject' do
             expect { propagation_style }.to change { propagation_style_inject }.to(%w[b3multi b3])
+            expect(settings.tracing.send(:resolve_option, :propagation_style_inject).precedence_set).to eq(Datadog::Core::Configuration::Option::Precedence::ENVIRONMENT)
           end
 
           context 'with a mixed case value' do