Index: terminal-screen.c
===================================================================
--- terminal-screen.c	(revision 18188)
+++ terminal-screen.c	(revision 19035)
@@ -567,7 +567,7 @@
   switch (binding)
     {
     case TERMINAL_ERASE_BINDING_AUTO:
-      vte_terminal_set_backspace_binding (VTE_TERMINAL (screen->terminal), VTE_ERASE_AUTO);
+      vte_terminal_set_delete_binding (VTE_TERMINAL (screen->terminal), VTE_ERASE_AUTO);
       break;
 
     case TERMINAL_ERASE_BINDING_ASCII_BACKSPACE: