diff --git a/entityreference.handler.inc b/entityreference.handler.inc
index e66b414..3943a69 100644
--- a/entityreference.handler.inc
+++ b/entityreference.handler.inc
@@ -47,7 +47,7 @@ interface EntityReferenceHandler {
   /**
    * Generate a settings form for this handler.
    */
-  public static function settingsForm($field);
+  public static function settingsForm($field, $instance);
 }
 
 /**
@@ -62,7 +62,7 @@ class EntityReferenceHandler_broken implements EntityReferenceHandler {
     $this->field = $field;
   }
 
-  public static function settingsForm($field) {
+  public static function settingsForm($field, $instance) {
     $form['handler'] = array(
       '#markup' => t('The selected handler is broken.'),
     );
diff --git a/entityreference.module b/entityreference.module
index 60230a7..fdfdcc7 100644
--- a/entityreference.module
+++ b/entityreference.module
@@ -188,6 +188,7 @@ function entityreference_field_settings_form($field, $instance, $has_data) {
     '#process' => array('entityreference_render_settings'),
     '#tree' => TRUE,
     '#field' => $field,
+    '#instance' => $instance,
   );
 
   return $form;
@@ -212,11 +213,12 @@ function entityreference_render_settings($element, $form_state) {
 
   // Rebuild the field configuration based on the submitted structure.
   $field = $element['#field'];
+  $instance = $element['#instance'];
   if (isset($form_state['values']['field']['settings'])) {
     $field['settings'] = $form_state['values']['field']['settings'] + $field['settings'];
   }
 
-  $element += call_user_func(array($class, 'settingsForm'), $field);
+  $element += call_user_func(array($class, 'settingsForm'), $field, $instance);
   return $element;
 }
 
diff --git a/handler/base.inc b/handler/base.inc
index 1a122df..5624d0e 100644
--- a/handler/base.inc
+++ b/handler/base.inc
@@ -34,7 +34,7 @@ class EntityReferenceHandler_base implements EntityReferenceHandler {
   /**
    * Implements EntityReferenceHandler::settingsForm().
    */
-  public static function settingsForm($field) {
+  public static function settingsForm($field, $instance) {
     $entity_info = entity_get_info($field['settings']['target_type']);
     $bundles = array();
     foreach ($entity_info['bundles'] as $bundle_name => $bundle_info) {