diff --git a/doc/nrf/libraries/modem/location.rst b/doc/nrf/libraries/modem/location.rst
index 413682aa6ec3..bae506253fb3 100644
--- a/doc/nrf/libraries/modem/location.rst
+++ b/doc/nrf/libraries/modem/location.rst
@@ -60,6 +60,14 @@ The supported location methods are as follows:
 
 The ``cloud location`` method handles the location methods (cellular and Wi-Fi positioning)
 that scan for technology-specific information and sends it over to the cloud service for location resolution.
+If the following conditions are met, Wi-Fi and cellular scan results are combined into a single cloud request:
+
+* Methods are one after the other in the location request method list.
+* Location request mode is :c:enum:`LOCATION_REQ_MODE_FALLBACK`.
+* Requested cloud service for Wi-Fi and cellular is the same.
+
+A special :c:enum:`LOCATION_METHOD_WIFI_CELLULAR` method can appear within the :c:struct:`location_event_data` structure,
+but it cannot be added into the location configuration passed to the :c:func:`location_request` function.
 
 The default priority order of location methods is GNSS positioning, Wi-Fi positioning and Cellular positioning.
 If any of these methods are disabled, the method is simply omitted from the list.
diff --git a/doc/nrf/releases_and_maturity/releases/release-notes-changelog.rst b/doc/nrf/releases_and_maturity/releases/release-notes-changelog.rst
index e9288f289924..f72a01af91b3 100644
--- a/doc/nrf/releases_and_maturity/releases/release-notes-changelog.rst
+++ b/doc/nrf/releases_and_maturity/releases/release-notes-changelog.rst
@@ -798,6 +798,8 @@ Modem libraries
       These are for metrics collection purposes and sent only if the :kconfig:option:`CONFIG_LOCATION_DATA_DETAILS` Kconfig option is set.
     * Support for multiple event handlers.
     * Additional location data details into the :c:struct:`location_data_details` structure hierarchy.
+    * The :c:enumerator:`LOCATION_METHOD_WIFI_CELLULAR` method that cannot be added into the location configuration passed to the :c:func:`location_request()` function,
+      but may occur within the :c:struct:`location_event_data` structure.
 
   * Updated:
 
diff --git a/include/modem/location.h b/include/modem/location.h
index 1ac23aa96deb..643aaa6f7bd5 100644
--- a/include/modem/location.h
+++ b/include/modem/location.h
@@ -43,6 +43,19 @@ enum location_method {
 	LOCATION_METHOD_GNSS,
 	/** Wi-Fi positioning. */
 	LOCATION_METHOD_WIFI,
+	/**
+	 * Wi-Fi and cellular positioning combined into one cloud request.
+	 *
+	 * Cannot be used in the method list passed to location_request(),
+	 * but this method can appear in the location event (@ref location_event_data.id)
+	 * to indicate that Wi-Fi and cellular positioning methods have been combined
+	 * into a single cloud location method.
+	 *
+	 * If the combined method is desired, set Wi-Fi and cellular methods next to each other
+	 * in the method list passed to location_request(). This also happens by default if
+	 * NULL configuration is passed to location_request().
+	 */
+	LOCATION_METHOD_WIFI_CELLULAR,
 };
 
 /** Location acquisition mode. */
@@ -204,8 +217,8 @@ struct location_data_details_wifi {
  *
  * Only one of the child structures is filled most of the time depending on the method
  * found in @ref location_event_data.method member of the parent structure.
- * There are cases when cellular and Wi-Fi data are combined into a single cloud request
- * in which case data details for both methods are filled.
+ * For a combined method @ref LOCATION_METHOD_WIFI_CELLULAR both @ref cellular and
+ * @ref wifi are filled.
  */
 struct location_data_details {
 	/**
@@ -285,13 +298,7 @@ struct location_data_cloud {
 struct location_event_data {
 	/** Event ID. */
 	enum location_event_id id;
-	/**
-	 * Used location method.
-	 *
-	 * When cellular and Wi-Fi positioning are used and they are combined into a single
-	 * cloud request by the library, the method is not known so there is some uncertainty
-	 * on the reported location method.
-	 */
+	/** Used location method. */
 	enum location_method method;
 
 	/** Event specific data. */
diff --git a/lib/location/location.c b/lib/location/location.c
index 0b41f3eae0e2..93c1e28adb22 100644
--- a/lib/location/location.c
+++ b/lib/location/location.c
@@ -85,7 +85,7 @@ static bool initialized;
 static const char LOCATION_METHOD_CELLULAR_STR[] = "Cellular";
 static const char LOCATION_METHOD_GNSS_STR[] = "GNSS";
 static const char LOCATION_METHOD_WIFI_STR[] = "Wi-Fi";
-static const char LOCATION_METHOD_INTERNAL_WIFI_CELLULAR_STR[] = "Wi-Fi + Cellular";
+static const char LOCATION_METHOD_WIFI_CELLULAR_STR[] = "Wi-Fi + Cellular";
 static const char LOCATION_METHOD_UNKNOWN_STR[] = "Unknown";
 
 int location_handler_register(location_event_handler_t handler)
@@ -299,13 +299,10 @@ const char *location_method_str(enum location_method method)
 	case LOCATION_METHOD_WIFI:
 		return LOCATION_METHOD_WIFI_STR;
 
+	case LOCATION_METHOD_WIFI_CELLULAR:
+		return LOCATION_METHOD_WIFI_CELLULAR_STR;
+
 	default:
-		/* Wi-Fi + Cellular method cannot be checked in switch-case because
-		 * it's not defined in the enum
-		 */
-		if (method == LOCATION_METHOD_INTERNAL_WIFI_CELLULAR) {
-			return LOCATION_METHOD_INTERNAL_WIFI_CELLULAR_STR;
-		}
 		return LOCATION_METHOD_UNKNOWN_STR;
 	}
 }
diff --git a/lib/location/location_core.c b/lib/location/location_core.c
index 764ccac94c5b..6fcb6f2b2604 100644
--- a/lib/location/location_core.c
+++ b/lib/location/location_core.c
@@ -122,8 +122,8 @@ static const struct location_method_api method_wifi_api = {
  * into a single cloud request. This method cannot be chosen in the library API.
  */
 static const struct location_method_api method_cloud_location_api = {
-	.method           = LOCATION_METHOD_INTERNAL_WIFI_CELLULAR,
-	.method_string    = "Wi-Fi + Cellular (internal)",
+	.method           = LOCATION_METHOD_WIFI_CELLULAR,
+	.method_string    = "Wi-Fi + Cellular",
 	.init             = method_cloud_location_init,
 	.location_get     = method_cloud_location_get,
 	.cancel           = method_cloud_location_cancel,
@@ -281,6 +281,10 @@ int location_core_validate_params(const struct location_config *config)
 	}
 
 	for (int i = 0; i < config->methods_count; i++) {
+		if (config->methods[i].method == LOCATION_METHOD_WIFI_CELLULAR) {
+			LOG_ERR("LOCATION_METHOD_WIFI_CELLULAR cannot be given in location config");
+			return -EINVAL;
+		}
 		/* Check if the method is valid */
 		method_api = location_method_api_get(config->methods[i].method);
 		if (method_api == NULL) {
@@ -376,10 +380,7 @@ static int location_core_location_get_pos(void)
 	if (IS_ENABLED(CONFIG_LOCATION_DATA_DETAILS)) {
 		struct location_event_data request_started = {
 			.id = LOCATION_EVT_STARTED,
-			/* Use the first method from the config to avoid putting internal combined
-			 * Wi-Fi and cellular method into the event.
-			 */
-			.method = loc_req_info.config.methods[0].method
+			.method = requested_method
 		};
 
 		location_utils_event_dispatch(&request_started);
@@ -450,7 +451,7 @@ static void location_request_info_create(const struct location_config *config)
 			if (!combined) {
 				LOG_INF("Wi-Fi and cellular methods combined");
 				loc_req_info.methods[loc_req_info.methods_count] =
-					LOCATION_METHOD_INTERNAL_WIFI_CELLULAR;
+					LOCATION_METHOD_WIFI_CELLULAR;
 				loc_req_info.methods_count++;
 				combined = true;
 			}
@@ -624,80 +625,6 @@ static void location_core_event_details_get(struct location_event_data *event)
 #endif
 }
 
-static void location_core_event_cb_fallback(
-	enum location_method current_method,
-	enum location_method next_method,
-	enum location_event_id current_event,
-	struct location_data_details *details)
-{
-#if defined(CONFIG_LOCATION_DATA_DETAILS)
-	if (current_method == LOCATION_METHOD_INTERNAL_WIFI_CELLULAR) {
-		/* When fallback happens, current method is always the 1st one whenever
-		 * combined Wi-Fi and cellular method is used.
-		 * For example, method list is Wi-Fi, Cellular, GNSS, we use Wi-Fi.
-		 * If the Wi-Fi and cellular are not the first two methods in some order,
-		 * we won't be in fallback from the combined Wi-Fi and cellular method.
-		 * Note: If CONFIG_LOCATION_METHODS_LIST_SIZE is increased, this won't work anymore.
-		 */
-		current_method = loc_req_info.config.methods[0].method;
-	}
-	if (next_method == LOCATION_METHOD_INTERNAL_WIFI_CELLULAR) {
-		/* When fallback happens, next method is always the 2nd one whenever
-		 * combined Wi-Fi and cellular method is used.
-		 * For example, method list is GNSS, Cellular, Wi-Fi, we use Cellular.
-		 * If the Wi-Fi and cellular are not the 2nd and 3rd methods in some order,
-		 * we won't be in fallback into the combined Wi-Fi and cellular method.
-		 * Note: If CONFIG_LOCATION_METHODS_LIST_SIZE is increased, this won't work anymore.
-		 */
-		next_method = loc_req_info.config.methods[1].method;
-	}
-
-	struct location_event_data fallback = {
-		.id = LOCATION_EVT_FALLBACK,
-		.method = current_method,
-		.fallback = {
-			.next_method = next_method,
-			.cause = current_event,
-			.details = *details,
-		}
-	};
-
-	location_utils_event_dispatch(&fallback);
-#endif
-}
-
-enum location_method location_core_event_method_resolve(enum location_method method)
-{
-#if defined(CONFIG_LOCATION_METHOD_CELLULAR) && defined(CONFIG_LOCATION_METHOD_WIFI)
-	/* Other than combined Wi-Fi + cellular method is used as is */
-	if (method != LOCATION_METHOD_INTERNAL_WIFI_CELLULAR) {
-		return method;
-	}
-
-	/* If Wi-Fi and cellular were requested and location accuracy is available */
-	if (loc_req_info.wifi != NULL && loc_req_info.cellular != NULL &&
-	    loc_req_info.current_event_data.location.accuracy > 0) {
-
-		/* If accuracy is higher than Wi-Fi threshold, use cellular, otherwise Wi-Fi */
-		if (loc_req_info.current_event_data.location.accuracy >
-		    METHOD_WIFI_ACCURACY_THRESHOLD) {
-			return LOCATION_METHOD_CELLULAR;
-		} else {
-			return LOCATION_METHOD_WIFI;
-		}
-	}
-
-	/* If Wi-Fi was requested, use Wi-Fi, otherwise cellular */
-	if (loc_req_info.wifi != NULL) {
-		return LOCATION_METHOD_WIFI;
-	} else {
-		return LOCATION_METHOD_CELLULAR;
-	}
-#else
-	return method;
-#endif
-}
-
 static void location_core_event_cb_fn(struct k_work *work)
 {
 	char latitude_str[12];
@@ -707,8 +634,7 @@ static void location_core_event_cb_fn(struct k_work *work)
 	int err;
 
 	k_work_cancel_delayable(&location_core_method_timeout_work);
-	loc_req_info.current_event_data.method =
-		location_core_event_method_resolve(loc_req_info.current_method);
+	loc_req_info.current_event_data.method = loc_req_info.current_method;
 
 	/* Update the event structure with the details of the current method */
 	location_core_event_details_get(&loc_req_info.current_event_data);
@@ -790,13 +716,23 @@ static void location_core_event_cb_fn(struct k_work *work)
 				 * also for failure events
 				 */
 				location_utils_event_dispatch(&loc_req_info.current_event_data);
+#if defined(CONFIG_LOCATION_DATA_DETAILS)
 			} else {
 				/* Details had been set into the error information */
-				location_core_event_cb_fallback(
-					loc_req_info.current_method,
-					requested_method,
-					loc_req_info.current_event_data.id,
-					&loc_req_info.current_event_data.error.details);
+				struct location_data_details *details =
+					&loc_req_info.current_event_data.error.details;
+
+				struct location_event_data fallback = {
+					.id = LOCATION_EVT_FALLBACK,
+					.method = loc_req_info.current_method,
+					.fallback = {
+						.next_method = requested_method,
+						.cause = loc_req_info.current_event_data.id,
+						.details = *details,
+					}
+				};
+				location_utils_event_dispatch(&fallback);
+#endif
 			}
 
 			location_core_current_event_data_init(requested_method);
diff --git a/lib/location/location_core.h b/lib/location/location_core.h
index b5cae3fd40e3..cd62d8aa9ee5 100644
--- a/lib/location/location_core.h
+++ b/lib/location/location_core.h
@@ -7,8 +7,6 @@
 #ifndef LOCATION_CORE_H
 #define LOCATION_CORE_H
 
-#define LOCATION_METHOD_INTERNAL_WIFI_CELLULAR 100
-
 /** Information required to carry out a location request. */
 struct location_request_info {
 	const struct location_wifi_config *wifi;
diff --git a/lib/location/method_cloud_location.c b/lib/location/method_cloud_location.c
index 20349d4e3893..8ef8c57c31a2 100644
--- a/lib/location/method_cloud_location.c
+++ b/lib/location/method_cloud_location.c
@@ -179,11 +179,11 @@ int method_cloud_location_get(const struct location_request_info *request)
 	method_cloud_location_start_work.wifi_config = NULL;
 	method_cloud_location_start_work.cell_config = NULL;
 	if (request->current_method == LOCATION_METHOD_CELLULAR ||
-	    request->current_method == LOCATION_METHOD_INTERNAL_WIFI_CELLULAR) {
+	    request->current_method == LOCATION_METHOD_WIFI_CELLULAR) {
 		method_cloud_location_start_work.cell_config = request->cellular;
 	}
 	if (request->current_method == LOCATION_METHOD_WIFI ||
-	    request->current_method == LOCATION_METHOD_INTERNAL_WIFI_CELLULAR) {
+	    request->current_method == LOCATION_METHOD_WIFI_CELLULAR) {
 		method_cloud_location_start_work.wifi_config = request->wifi;
 	}
 
diff --git a/samples/cellular/modem_shell/src/location/location_shell.c b/samples/cellular/modem_shell/src/location/location_shell.c
index 06385978a87f..a48d8454b645 100644
--- a/samples/cellular/modem_shell/src/location/location_shell.c
+++ b/samples/cellular/modem_shell/src/location/location_shell.c
@@ -236,13 +236,13 @@ static void location_print_data_details(
 	}
 #endif
 #if defined(CONFIG_LOCATION_METHOD_CELLULAR)
-	if (method == LOCATION_METHOD_CELLULAR) {
+	if (method == LOCATION_METHOD_CELLULAR || method == LOCATION_METHOD_WIFI_CELLULAR) {
 		mosh_print("  neighbor cells: %d", details->cellular.ncells_count);
 		mosh_print("  GCI cells: %d", details->cellular.gci_cells_count);
 	}
 #endif
 #if defined(CONFIG_LOCATION_METHOD_WIFI)
-	if (method == LOCATION_METHOD_WIFI) {
+	if (method == LOCATION_METHOD_WIFI || method == LOCATION_METHOD_WIFI_CELLULAR) {
 		mosh_print("  Wi-Fi APs: %d", details->wifi.ap_count);
 	}
 #endif
diff --git a/tests/lib/location/src/location_test.c b/tests/lib/location/src/location_test.c
index 119a11e2a4e5..7b08a8861c27 100644
--- a/tests/lib/location/src/location_test.c
+++ b/tests/lib/location/src/location_test.c
@@ -504,11 +504,6 @@ void test_location_method_str(void)
 
 	method = location_method_str(99);
 	TEST_ASSERT_EQUAL_STRING("Unknown", method);
-
-	/* 100 is a hidden internally used LOCATION_METHOD_INTERNAL_WIFI_CELLULAR constant */
-	method = location_method_str(100);
-	TEST_ASSERT_EQUAL_STRING("Wi-Fi + Cellular", method);
-
 }
 
 /********* GNSS POSITIONING TESTS ***********************/
@@ -1352,6 +1347,23 @@ void test_error_too_many_methods(void)
 	TEST_ASSERT_EQUAL(-EINVAL, err);
 }
 
+/* Test location request with LOCATION_METHOD_WIFI_CELLULAR in method list. */
+void test_error_wifi_cellular_method(void)
+{
+	int err;
+	struct location_config config = { 0 };
+	enum location_method methods[] = {
+		LOCATION_METHOD_GNSS,
+		LOCATION_METHOD_WIFI_CELLULAR,
+		LOCATION_METHOD_CELLULAR};
+
+	/* Check that location_config_defaults_set returns an error with too many methods */
+	location_config_defaults_set(&config, 3, methods);
+
+	err = location_request(&config);
+	TEST_ASSERT_EQUAL(-EINVAL, err);
+}
+
 /* Test cancelling location request when there is no pending location request. */
 void test_error_cancel_no_operation(void)
 {