diff --git a/docs/compute/deployment.rst b/docs/compute/deployment.rst
index 31c1935..0270d26 100644
--- a/docs/compute/deployment.rst
+++ b/docs/compute/deployment.rst
@@ -24,6 +24,11 @@
 Supported private SSH key types
 -------------------------------
 
+.. note::
+
+  paramiko v2.7.0 introduced support for OpenSSH 6.5 style private key files
+  so this section is only relevant for users using older versions of paramiko.
+
 `paramiko`_ Python library we use for deployment only supports RSA, DSS and
 ECDSA private keys in PEM format.
 
diff --git a/libcloud/test/compute/test_ssh_client.py b/libcloud/test/compute/test_ssh_client.py
index eae7330..2704d1c 100644
--- a/libcloud/test/compute/test_ssh_client.py
+++ b/libcloud/test/compute/test_ssh_client.py
@@ -36,8 +36,10 @@
 
 if not have_paramiko:
     ParamikoSSHClient = None  # NOQA
+    paramiko_version = '0.0.0'
 else:
     import paramiko
+    paramiko_version = paramiko.__version__
 
 
 @unittest.skipIf(not have_paramiko, 'Skipping because paramiko is not available')
@@ -140,6 +142,8 @@
                           expected_msg, mock.connect)
 
     @patch('paramiko.SSHClient', Mock)
+    @unittest.skipIf(paramiko_version >= '2.7.0',
+                     'New versions of paramiko support OPENSSH key format')
     def test_key_file_non_pem_format_error(self):
         path = os.path.join(os.path.dirname(__file__),
                             'fixtures', 'misc',