diff --git a/ChangeLog b/ChangeLog
index a019e935..02ab60f7 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,8 @@
+===== 2.6.31  ===
+2017-11-03
+    * replace functions deprecated in PHP 7.2
+
+
 2016-09-11  Uwe Tews
     * {math} fix parameter checking order to avoid misleading message
     * {math} replace wrong versiom
diff --git a/libs/Smarty.class.php b/libs/Smarty.class.php
index 41d53706..3c97b5fd 100644
--- a/libs/Smarty.class.php
+++ b/libs/Smarty.class.php
@@ -27,7 +27,7 @@
  * @author Monte Ohrt <monte at ohrt dot com>
  * @author Andrei Zmievski <andrei@php.net>
  * @package Smarty
- * @version 2.6.30
+ * @version 2.6.31-dev
  */
 
 /* $Id$ */
@@ -465,7 +465,7 @@ class Smarty
      *
      * @var string
      */
-    var $_version              = '2.6.30';
+    var $_version              = '2.6.31';
 
     /**
      * current template inclusion depth
diff --git a/libs/Smarty_Compiler.class.php b/libs/Smarty_Compiler.class.php
index 00602150..904601d7 100644
--- a/libs/Smarty_Compiler.class.php
+++ b/libs/Smarty_Compiler.class.php
@@ -259,14 +259,9 @@ class Smarty_Compiler extends Smarty {
 
         preg_match_all($search, $source_content, $match,  PREG_SET_ORDER);
         $this->_folded_blocks = $match;
-        reset($this->_folded_blocks);
 
         /* replace special blocks by "{php}" */
-        $source_content = preg_replace_callback($search, create_function ('$matches', "return '"
-                                       . $this->_quote_replace($this->left_delimiter) . 'php'
-                                       . "' . str_repeat(\"\n\", substr_count('\$matches[1]', \"\n\")) .'"
-                                       . $this->_quote_replace($this->right_delimiter)
-                                       . "';")
+        $source_content = preg_replace_callback($search, array($this,'_preg_callback')
                                        , $source_content);
 
         /* Gather all template tags. */
@@ -556,7 +551,7 @@ class Smarty_Compiler extends Smarty {
 
             case 'php':
                 /* handle folded tags replaced by {php} */
-                list(, $block) = each($this->_folded_blocks);
+                $block = array_shift($this->_folded_blocks);
                 $this->_current_line_no += substr_count($block[0], "\n");
                 /* the number of matched elements in the regexp in _compile_file()
                    determins the type of folded tag that was found */
@@ -754,7 +749,12 @@ class Smarty_Compiler extends Smarty {
         return true;
     }
 
-
+    function _preg_callback ($matches) {
+    return $this->_quote_replace($this->left_delimiter)
+           . 'php'
+           . str_repeat("\n", substr_count($matches[1], "\n"))
+           . $this->_quote_replace($this->right_delimiter);
+    }
     /**
      * compile custom function tag
      *