diff --git a/src/term.c b/src/term.c
index ef88705..83b54e1 100644
--- a/src/term.c
+++ b/src/term.c
@@ -4546,6 +4546,9 @@
 		    if (tp[1 + (tp[0] != CSI)] == '>' && semicols == 2)
 		    {
 			int need_flush = FALSE;
+# ifdef FEAT_MOUSE_SGR
+			int is_iterm2 = FALSE;
+# endif
 
 			/* if xterm version >= 141 try to get termcap codes */
 			if (version >= 141)
@@ -4573,12 +4576,29 @@
 # endif
 			}
 
+			if (version == 95)
+			{
+			    /* Mac Terminal.app sends 1;95;0 */
+			    if (STRNCMP(tp + extra - 2, "1;95;0c", 7) == 0)
+			    {
+				is_not_xterm = TRUE;
+				is_mac_terminal = TRUE;
+			    }
+# ifdef FEAT_MOUSE_SGR
+			    /* Iterm2 sends 0;95;0 */
+			    if (STRNCMP(tp + extra - 2, "0;95;0c", 7) == 0)
+				is_iterm2 = TRUE;
+# endif
+			}
+
 			/* Only set 'ttymouse' automatically if it was not set
 			 * by the user already. */
 			if (!option_was_set((char_u *)"ttym"))
 			{
 # ifdef FEAT_MOUSE_SGR
-			    if (version >= 277)
+			    /* Xterm version 277 supports SGR.  Also support
+			     * Terminal.app and iterm2. */
+			    if (version >= 277 || is_iterm2 || is_mac_terminal)
 				set_option_value((char_u *)"ttym", 0L,
 							  (char_u *)"sgr", 0);
 			    else
@@ -4593,14 +4613,6 @@
 			 * "xterm-256colors"  but are not fully xterm
 			 * compatible. */
 
-			/* Mac Terminal.app sends 1;95;0 */
-			if (version == 95
-				&& STRNCMP(tp + extra - 2, "1;95;0c", 7) == 0)
-			{
-			    is_not_xterm = TRUE;
-			    is_mac_terminal = TRUE;
-			}
-
 			/* Gnome terminal sends 1;3801;0, 1;4402;0 or 1;2501;0.
 			 * xfce4-terminal sends 1;2802;0.
 			 * screen sends 83;40500;0
diff --git a/src/version.c b/src/version.c
index e38c188..2789f2b 100644
--- a/src/version.c
+++ b/src/version.c
@@ -767,6 +767,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    1303,
+/**/
     1302,
 /**/
     1301,