diff --git a/blocks/online_users/block_online_users.php b/blocks/online_users/block_online_users.php
index 01ada957dad..9d1fc90b7f9 100644
--- a/blocks/online_users/block_online_users.php
+++ b/blocks/online_users/block_online_users.php
@@ -129,14 +129,16 @@ class block_online_users extends block_base {
                     $this->content->text .= $OUTPUT->user_picture($user, array('size'=>16, 'alttext'=>false, 'link'=>false)) .$user->fullname.'</a></div>';
 
                     if ($USER->id == $user->id) {
-                        $action = ($user->uservisibility != null && $user->uservisibility == 0) ? 'show' : 'hide';
-                        $anchortagcontents = $OUTPUT->pix_icon('t/' . $action,
-                            get_string('online_status:' . $action, 'block_online_users'));
-                        $anchortag = html_writer::link("", $anchortagcontents,
-                            array('title' => get_string('online_status:' . $action, 'block_online_users'),
-                                'data-action' => $action, 'data-userid' => $user->id, 'id' => 'change-user-visibility'));
+                        if ($CFG->block_online_users_onlinestatushiding) {
+                            $action = ($user->uservisibility != null && $user->uservisibility == 0) ? 'show' : 'hide';
+                            $anchortagcontents = $OUTPUT->pix_icon('t/' . $action,
+                                get_string('online_status:' . $action, 'block_online_users'));
+                            $anchortag = html_writer::link("", $anchortagcontents,
+                                array('title' => get_string('online_status:' . $action, 'block_online_users'),
+                                    'data-action' => $action, 'data-userid' => $user->id, 'id' => 'change-user-visibility'));
 
-                        $this->content->text .= '<div class="uservisibility">' . $anchortag . '</div>';
+                            $this->content->text .= '<div class="uservisibility">' . $anchortag . '</div>';
+                        }
                     } else {
                         if ($canshowicon) {  // Only when logged in and messaging active etc.
                             $anchortagcontents = $OUTPUT->pix_icon('t/message', get_string('messageselectadd'));
diff --git a/blocks/online_users/classes/fetcher.php b/blocks/online_users/classes/fetcher.php
index 20f706f97e2..a18e625caaf 100644
--- a/blocks/online_users/classes/fetcher.php
+++ b/blocks/online_users/classes/fetcher.php
@@ -67,7 +67,7 @@ class fetcher {
      * @param int $courseid The course id to check
      */
     protected function set_sql($currentgroup, $now, $timetoshowusers, $context, $sitelevel, $courseid) {
-        global $USER, $DB;
+        global $USER, $DB, $CFG;
 
         $timefrom = 100 * floor(($now - $timetoshowusers) / 100); // Round to nearest 100 seconds for better query cache.
 
@@ -76,7 +76,14 @@ class fetcher {
         $groupby       = "";
         $lastaccess    = ", lastaccess";
         $timeaccess    = ", ul.timeaccess AS lastaccess";
-        $uservisibility = ", up.value AS uservisibility";
+        $uservisibility = "";
+        $uservisibilityselect = "";
+        if ($CFG->block_online_users_onlinestatushiding) {
+            $uservisibility = ", up.value AS uservisibility";
+            $uservisibilityselect = "AND (" . $DB->sql_cast_char2int('up.value') . " = 1
+                                    OR up.value IS NULL
+                                    OR u.id = :userid)";
+        }
         $params = array();
 
         $userfields = \user_picture::fields('u', array('username'));
@@ -88,7 +95,9 @@ class fetcher {
             $groupby = "GROUP BY $userfields";
             $lastaccess = ", MAX(u.lastaccess) AS lastaccess";
             $timeaccess = ", MAX(ul.timeaccess) AS lastaccess";
-            $uservisibility = ", MAX(up.value) AS uservisibility";
+            if ($CFG->block_online_users_onlinestatushiding) {
+                $uservisibility = ", MAX(up.value) AS uservisibility";
+            }
             $params['currentgroup'] = $currentgroup;
         }
 
@@ -105,9 +114,7 @@ class fetcher {
                      WHERE u.lastaccess > :timefrom
                            AND u.lastaccess <= :now
                            AND u.deleted = 0
-                           AND (" . $DB->sql_cast_char2int('up.value') . " = 1
-                               OR up.value IS NULL
-                               OR u.id = :userid)
+                           $uservisibilityselect
                            $groupselect $groupby
                   ORDER BY lastaccess DESC ";
 
@@ -118,9 +125,7 @@ class fetcher {
                       WHERE u.lastaccess > :timefrom
                             AND u.lastaccess <= :now
                             AND u.deleted = 0
-                            AND (" . $DB->sql_cast_char2int('up.value') . " = 1
-                                OR up.value IS NULL
-                                OR u.id = :userid)
+                            $uservisibilityselect
                             $groupselect";
         } else {
             // Course level - show only enrolled users for now.
@@ -138,9 +143,7 @@ class fetcher {
                            AND ul.courseid = :courseid
                            AND ul.timeaccess <= :now
                            AND u.deleted = 0
-                           AND (" . $DB->sql_cast_char2int('up.value') . " = 1
-                               OR up.value IS NULL
-                               OR u.id = :userid)
+                           $uservisibilityselect
                            $groupselect $groupby
                   ORDER BY lastaccess DESC";
 
@@ -154,9 +157,7 @@ class fetcher {
                            AND ul.courseid = :courseid
                            AND ul.timeaccess <= :now
                            AND u.deleted = 0
-                           AND (" . $DB->sql_cast_char2int('up.value') . " = 1
-                               OR up.value IS NULL
-                               OR u.id = :userid)
+                           $uservisibilityselect
                            $groupselect";
 
             $params['courseid'] = $courseid;
diff --git a/blocks/online_users/lang/en/block_online_users.php b/blocks/online_users/lang/en/block_online_users.php
index c6bc0223f1a..f34f5d68583 100644
--- a/blocks/online_users/lang/en/block_online_users.php
+++ b/blocks/online_users/lang/en/block_online_users.php
@@ -23,7 +23,9 @@
  * @license   http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
  */
 
+$string['onlinestatushiding_desc'] = 'If enabled, users have the option to hide their online status from other users.';
 $string['configtimetosee'] = 'Number of minutes determining the period of inactivity after which a user is no longer considered to be online.';
+$string['onlinestatushiding'] = 'Online status hiding';
 $string['nouser'] = 'No online users';
 $string['numuser'] = '{$a} online user';
 $string['numusers'] = '{$a} online users';
diff --git a/blocks/online_users/settings.php b/blocks/online_users/settings.php
index b9d7d81524d..39d3bf0dee7 100644
--- a/blocks/online_users/settings.php
+++ b/blocks/online_users/settings.php
@@ -27,5 +27,9 @@ defined('MOODLE_INTERNAL') || die;
 if ($ADMIN->fulltree) {
     $settings->add(new admin_setting_configtext('block_online_users_timetosee', get_string('timetosee', 'block_online_users'),
                    get_string('configtimetosee', 'block_online_users'), 5, PARAM_INT));
+
+    $settings->add(new admin_setting_configcheckbox('block_online_users_onlinestatushiding',
+            get_string('onlinestatushiding', 'block_online_users'),
+            get_string('onlinestatushiding_desc', 'block_online_users'), 1));
 }
 
diff --git a/blocks/online_users/tests/behat/block_online_users_course.feature b/blocks/online_users/tests/behat/block_online_users_course.feature
index 20b0d950f1e..097cee10c43 100644
--- a/blocks/online_users/tests/behat/block_online_users_course.feature
+++ b/blocks/online_users/tests/behat/block_online_users_course.feature
@@ -42,7 +42,9 @@ Feature: The online users block allow you to see who is currently online
 
   @javascript
   Scenario: Hide/show user's online status from/to other users in the online users block on course page
-    Given I log in as "teacher1"
+    Given the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 1 |
+    And I log in as "teacher1"
     And I am on "Course 1" course homepage with editing mode on
     And I add the "Online users" block
     And I log out
@@ -71,3 +73,45 @@ Feature: The online users block allow you to see who is currently online
     Then I should see "2 online users" in the "Online users" "block"
     And I should see "Teacher 1" in the "Online users" "block"
     And I should see "Student 1" in the "Online users" "block"
+
+  @javascript
+  Scenario: Hide/show icon is not visible in the online users block on course page when the setting is disabled
+    Given the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 1 |
+    And I log in as "teacher1"
+    And I am on "Course 1" course homepage with editing mode on
+    And I add the "Online users" block
+    And I log out
+    And I log in as "student1"
+    And I am on "Course 1" course homepage
+    And "Hide" "icon" should exist in the ".block.block_online_users" "css_element"
+    And I log out
+    And the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 0 |
+    When I log in as "student1"
+    Then I should see "Student 1" in the "Online users" "block"
+    And "Hide" "icon" should not exist in the ".block.block_online_users" "css_element"
+
+  @javascript
+  Scenario: User is displayed in the online users block on course page when visibility setting is disabled,
+            ignoring the previously set visibility state
+    Given the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 1 |
+    And I log in as "teacher1"
+    And I am on "Course 1" course homepage with editing mode on
+    And I add the "Online users" block
+    And I log out
+    And I log in as "student1"
+    And I am on "Course 1" course homepage
+    And "Hide" "icon" should exist in the "#change-user-visibility" "css_element"
+    And I click on "#change-user-visibility" "css_element"
+    And I wait "1" seconds
+    And "Show" "icon" should exist in the "#change-user-visibility" "css_element"
+    And I log out
+    And the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 0 |
+    And I log in as "teacher1"
+    When I am on "Course 1" course homepage
+    Then I should see "2 online users" in the "Online users" "block"
+    And I should see "Teacher 1" in the "Online users" "block"
+    And I should see "Student 1" in the "Online users" "block"
diff --git a/blocks/online_users/tests/behat/block_online_users_dashboard.feature b/blocks/online_users/tests/behat/block_online_users_dashboard.feature
index 0d01207a605..2d32fc61caf 100644
--- a/blocks/online_users/tests/behat/block_online_users_dashboard.feature
+++ b/blocks/online_users/tests/behat/block_online_users_dashboard.feature
@@ -29,7 +29,9 @@ Feature: The online users block allow you to see who is currently online on dash
 
   @javascript
   Scenario: Hide/show user's online status from/to other users in the online users block on dashboard
-    Given I log in as "student1"
+    Given the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 1 |
+    And I log in as "student1"
     And I should see "1 online user" in the "Online users" "block"
     And I should see "Student 1" in the "Online users" "block"
     And "Hide" "icon" should exist in the "#change-user-visibility" "css_element"
@@ -52,3 +54,44 @@ Feature: The online users block allow you to see who is currently online on dash
     Then I should see "2 online users" in the "Online users" "block"
     And I should see "Student 2" in the "Online users" "block"
     And I should see "Student 1" in the "Online users" "block"
+
+  @javascript
+  Scenario: Hide/show icon is not visible in the online users block when the setting is disabled
+    Given the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 1 |
+    And I log in as "student1"
+    And I should see "1 online user" in the "Online users" "block"
+    And I should see "Student 1" in the "Online users" "block"
+    And "Hide" "icon" should exist in the ".block.block_online_users" "css_element"
+    And I log out
+    And the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 0 |
+    When I log in as "student1"
+    Then I should see "1 online user" in the "Online users" "block"
+    And I should see "Student 1" in the "Online users" "block"
+    And "Hide" "icon" should not exist in the ".block.block_online_users" "css_element"
+
+  @javascript
+  Scenario: User is displayed in the online users block when visibility setting is disabled,
+            ignoring the previously set visibility state
+    Given the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 1 |
+    And I log in as "student1"
+    And I should see "1 online user" in the "Online users" "block"
+    And I should see "Student 1" in the "Online users" "block"
+    And "Hide" "icon" should exist in the "#change-user-visibility" "css_element"
+    And I click on "#change-user-visibility" "css_element"
+    And I wait "1" seconds
+    And "Show" "icon" should exist in the "#change-user-visibility" "css_element"
+    And I log out
+    And I log in as "student2"
+    And I should see "1 online user" in the "Online users" "block"
+    And I should see "Student 2" in the "Online users" "block"
+    And I should not see "Student 1" in the "Online users" "block"
+    And I log out
+    And the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 0 |
+    When I log in as "student2"
+    Then I should see "2 online users" in the "Online users" "block"
+    And I should see "Student 2" in the "Online users" "block"
+    And I should see "Student 1" in the "Online users" "block"
diff --git a/blocks/online_users/tests/behat/block_online_users_frontpage.feature b/blocks/online_users/tests/behat/block_online_users_frontpage.feature
index 097c9e7f49a..ca817e8142d 100644
--- a/blocks/online_users/tests/behat/block_online_users_frontpage.feature
+++ b/blocks/online_users/tests/behat/block_online_users_frontpage.feature
@@ -52,7 +52,9 @@ Feature: The online users block allow you to see who is currently online on fron
 
   @javascript
   Scenario: Hide/show user's online status from/to other users in the online users block on front page
-    Given I log in as "admin"
+    Given the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 1 |
+    And I log in as "admin"
     And I am on site homepage
     And I navigate to "Turn editing on" in current page administration
     And I add the "Online users" block
@@ -84,3 +86,55 @@ Feature: The online users block allow you to see who is currently online on fron
     And I should see "Admin" in the "Online users" "block"
     And I should see "Student 2" in the "Online users" "block"
     And I should see "Student 1" in the "Online users" "block"
+
+  @javascript
+  Scenario: Hide/show icon is not visible in the online users block on front page when the setting is disabled
+    Given the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 1 |
+    And I log in as "admin"
+    And I am on site homepage
+    And I navigate to "Turn editing on" in current page administration
+    And I add the "Online users" block
+    And I log out
+    And I log in as "student1"
+    And I am on site homepage
+    And "Hide" "icon" should exist in the ".block.block_online_users" "css_element"
+    And I log out
+    And the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 0 |
+    When I log in as "student1"
+    Then I should see "Student 1" in the "Online users" "block"
+    And "Hide" "icon" should not exist in the ".block.block_online_users" "css_element"
+
+  @javascript
+  Scenario: User is displayed in the online users block on front page when visibility setting is disabled,
+            ignoring the previously set visibility state
+    Given the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 1 |
+    And I log in as "admin"
+    And I am on site homepage
+    And I navigate to "Turn editing on" in current page administration
+    And I add the "Online users" block
+    And I log out
+    And I log in as "student1"
+    And I am on site homepage
+    And "Hide" "icon" should exist in the "#change-user-visibility" "css_element"
+    And I click on "#change-user-visibility" "css_element"
+    And I wait "1" seconds
+    And "Show" "icon" should exist in the "#change-user-visibility" "css_element"
+    And I log out
+    And I log in as "student2"
+    And I am on site homepage
+    And I should see "2 online user" in the "Online users" "block"
+    And I should see "Admin" in the "Online users" "block"
+    And I should see "Student 2" in the "Online users" "block"
+    And I should not see "Student 1" in the "Online users" "block"
+    And I log out
+    And the following config values are set as admin:
+      | block_online_users_onlinestatushiding | 0 |
+    And I log in as "student2"
+    When I am on site homepage
+    Then I should see "3 online users" in the "Online users" "block"
+    And I should see "Admin" in the "Online users" "block"
+    And I should see "Student 2" in the "Online users" "block"
+    And I should see "Student 1" in the "Online users" "block"
diff --git a/blocks/online_users/tests/online_users_test.php b/blocks/online_users/tests/online_users_test.php
index 946e456fbed..da436ac5a4a 100644
--- a/blocks/online_users/tests/online_users_test.php
+++ b/blocks/online_users/tests/online_users_test.php
@@ -155,6 +155,8 @@ class block_online_users_testcase extends advanced_testcase {
     public function test_user_visibility_course1_group1_members() {
         global $CFG;
 
+        // Enable users to set their visibility to others in the online users block.
+        $CFG->block_online_users_onlinestatushiding = true;
         $groupid = $this->data['group1']->id;
         $now = time();
         $timetoshowusers = $CFG->block_online_users_timetosee * 60;
@@ -190,6 +192,18 @@ class block_online_users_testcase extends advanced_testcase {
         // User1 should not be displayed in the online users block.
         $this->assertEquals(2, $usercount);
         $this->assertFalse(array_key_exists($user1->id, $users));
+
+        // Disable users to set their visibility to others in the online users block.
+        // All users should be displayed now and the visibility status of a users should be ignored,
+        // as the capability of setting the visibility to other user has been disabled.
+        $CFG->block_online_users_onlinestatushiding = false;
+        // Test if the fetcher gets all the users including user1.
+        $onlineusers = new fetcher($groupid, $now, $timetoshowusers, $context, false, $courseid);
+        $users = $onlineusers->get_users();
+        $usercount = $onlineusers->count_users();
+        // User1 should be displayed in the online users block.
+        $this->assertEquals(3, $usercount);
+        $this->assertTrue(array_key_exists($user1->id, $users));
     }
 
     /**
@@ -234,6 +248,18 @@ class block_online_users_testcase extends advanced_testcase {
         // User1 should not be displayed in the online users block.
         $this->assertEquals(8, $usercount);
         $this->assertFalse(array_key_exists($user1->id, $users));
+
+        // Disable users to set their visibility to others in the online users block.
+        // All users should be displayed now and the visibility status of a users should be ignored,
+        // as the capability of setting the visibility to other user has been disabled.
+        $CFG->block_online_users_onlinestatushiding = false;
+        // Test if the fetcher gets all the users including user1.
+        $onlineusers = new fetcher($currentgroup, $now, $timetoshowusers, $context, false, $courseid);
+        $users = $onlineusers->get_users();
+        $usercount = $onlineusers->count_users();
+        // User1 should be displayed in the online users block.
+        $this->assertEquals(9, $usercount);
+        $this->assertTrue(array_key_exists($user1->id, $users));
     }
 
     /**
@@ -277,5 +303,17 @@ class block_online_users_testcase extends advanced_testcase {
         // User1 should not be displayed in the online users block.
         $this->assertEquals(11, $usercount);
         $this->assertFalse(array_key_exists($user1->id, $users));
+
+        // Disable users to set their visibility to others in the online users block.
+        // All users should be displayed now and the visibility status of a users should be ignored,
+        // as the capability of setting the visibility to other user has been disabled.
+        $CFG->block_online_users_onlinestatushiding = false;
+        // Test if the fetcher gets all the users including user1.
+        $onlineusers = new fetcher($currentgroup, $now, $timetoshowusers, $context, true);
+        $users = $onlineusers->get_users();
+        $usercount = $onlineusers->count_users();
+        // User1 should be displayed in the online users block.
+        $this->assertEquals(12, $usercount);
+        $this->assertTrue(array_key_exists($user1->id, $users));
     }
 }
diff --git a/blocks/online_users/version.php b/blocks/online_users/version.php
index eaf8a55d39b..c5806d31e88 100644
--- a/blocks/online_users/version.php
+++ b/blocks/online_users/version.php
@@ -24,6 +24,6 @@
 
 defined('MOODLE_INTERNAL') || die();
 
-$plugin->version   = 2019052000;        // The current plugin version (Date: YYYYMMDDXX)
+$plugin->version   = 2019052001;        // The current plugin version (Date: YYYYMMDDXX)
 $plugin->requires  = 2019051100;        // Requires this Moodle version
 $plugin->component = 'block_online_users'; // Full name of the plugin (used for diagnostics)