diff --git a/packages/workspace/src/generators/preset/preset.ts b/packages/workspace/src/generators/preset/preset.ts
index 21e35e83ea183..6679366655053 100644
--- a/packages/workspace/src/generators/preset/preset.ts
+++ b/packages/workspace/src/generators/preset/preset.ts
@@ -163,7 +163,7 @@ async function createPreset(tree: Tree, options: Schema) {
     const { libraryGenerator } = require('@nx' + '/js');
     return libraryGenerator(tree, {
       name: options.name,
-      directory: join('packages', options.name),
+      directory: '.',
       projectNameAndRootFormat: 'as-provided',
       bundler: 'tsc',
       unitTestRunner: 'vitest',