diff --git a/NEWS.md b/NEWS.md
index 5b891f1f..addd8fde 100644
--- a/NEWS.md
+++ b/NEWS.md
@@ -1,5 +1,7 @@
 # version 0.6-5
 
+* fix `st_as_stars()` method for `Spatial` gridded objects; see https://github.com/r-spatial/gstat/issues/123
+
 * add `prcomp()` methods for `stars` and `stars_proxy` objects, working on attributes or last dimension
 
 * `st_rasterize()` with `align=TRUE` returns `NA` values where there are no data; #668
diff --git a/R/sp.R b/R/sp.R
index d2295d33..705112d0 100644
--- a/R/sp.R
+++ b/R/sp.R
@@ -48,7 +48,7 @@ st_as_stars.Spatial = function(.x, ...) {
 			offset = gt$cellcentre.offset[1] - 0.5 * gt$cellsize[1], delta = gt$cellsize[1],
 			refsys = st_crs(.x))
 		y = create_dimension(1, gt$cells.dim[2], 
-			offset = gt$cellcentre.offset[2] + (gt$cells.dim[2] - 0.5) * gt$cellsize[1], 
+			offset = gt$cellcentre.offset[2] + (gt$cells.dim[2] - 0.5) * gt$cellsize[2],
 			delta = -gt$cellsize[2], refsys = st_crs(.x))
 		d = create_dimensions(list(x = x, y = y), raster = get_raster(dimensions = c("x", "y")))
 		lst = lapply(.x@data, function(x, dims) structure(x, dim = dims), dims = dim(d))