diff --git a/docs/sources/administration/correlations/create-a-new-correlation/index.md b/docs/sources/administration/correlations/create-a-new-correlation/index.md
index 485376804b4..9eedf7ed657 100644
--- a/docs/sources/administration/correlations/create-a-new-correlation/index.md
+++ b/docs/sources/administration/correlations/create-a-new-correlation/index.md
@@ -52,8 +52,8 @@ datasources:
       - targetUID: uid
         label: "test"
         description: "..."
+        type: query
         config:
-          type: "query"
           target:
             expr: "..."
           field: "name"
@@ -64,6 +64,14 @@ datasources:
               mapValue: "other"
             - type: logfmt
               field: "test"
+      - targetUID: uid2
+        label: "test 2"
+        description: "..."
+        type: external
+        config:
+          target:
+            url: "http://${example}"
+          field: "name"
 ```
 
 Description of provisioning properties:
@@ -77,12 +85,12 @@ Description of provisioning properties:
 **description**
 : Optional description
 
+**type**
+: Correlation type. Valid values are "query" for linking to a data source query and "external" for linking to an external URL.
+
 **config**
 : Config object
 
-**config.type**
-: Correlation type. Valid values are "query" for linking to a data source query and "external" for linking to an external URL.
-
 **config.target**
 : [Target query model](#determine-target-query-model-structure)
 
diff --git a/pkg/services/correlations/database.go b/pkg/services/correlations/database.go
index cd8361108a3..c9a78cbb042 100644
--- a/pkg/services/correlations/database.go
+++ b/pkg/services/correlations/database.go
@@ -30,7 +30,7 @@ func (s CorrelationsService) createCorrelation(ctx context.Context, cmd CreateCo
 	if correlation.Config.Type == CorrelationType("query") {
 		correlation.Type = CorrelationType("query")
 	} else if correlation.Config.Type != "" {
-		return correlation, ErrInvalidConfigType
+		return correlation, ErrConfigTypeDeprecated
 	}
 
 	err := s.SQLStore.WithTransactionalDbSession(ctx, func(session *db.Session) error {
diff --git a/pkg/services/correlations/models.go b/pkg/services/correlations/models.go
index 4e941517a38..5c655db2798 100644
--- a/pkg/services/correlations/models.go
+++ b/pkg/services/correlations/models.go
@@ -20,7 +20,7 @@ var (
 	ErrTransformationRegexReqExp     = errors.New("regex transformations require expression")
 	ErrCorrelationsQuotaFailed       = errors.New("error getting correlations quota")
 	ErrCorrelationsQuotaReached      = errors.New("correlations quota reached")
-	ErrInvalidConfigType             = errors.New("correlation contains non default value in config.type")
+	ErrConfigTypeDeprecated          = errors.New("config.type is deprecated; please move type to be sibling of config")
 )
 
 const (
diff --git a/pkg/services/provisioning/datasources/datasources.go b/pkg/services/provisioning/datasources/datasources.go
index 55edd021d00..05c242fb9c4 100644
--- a/pkg/services/provisioning/datasources/datasources.go
+++ b/pkg/services/provisioning/datasources/datasources.go
@@ -194,9 +194,12 @@ func (dc *DatasourceProvisioner) applyChanges(ctx context.Context, configPath st
 func makeCreateCorrelationCommand(correlation map[string]any, SourceUID string, OrgId int64) (correlations.CreateCorrelationCommand, error) {
 	// we look for a correlation type at the root if it is defined, if not use default
 	// we ignore the legacy config.type value - the only valid value at that version was "query"
-	var corrType = correlation["type"]
-	if corrType == nil || corrType == "" {
-		corrType = correlations.CorrelationType("query")
+	var corrTypeStr = correlation["type"]
+	var corrType = correlations.CorrelationType("query")
+
+	// if corTypeStr is nil, an empty string, or query, leave it as query
+	if corrTypeStr == "external" {
+		corrType = correlations.CorrelationType("external")
 	}
 
 	var json = jsoniter.ConfigCompatibleWithStandardLibrary
@@ -206,7 +209,7 @@ func makeCreateCorrelationCommand(correlation map[string]any, SourceUID string,
 		Description: correlation["description"].(string),
 		OrgId:       OrgId,
 		Provisioned: true,
-		Type:        corrType.(correlations.CorrelationType),
+		Type:        corrType,
 	}
 
 	targetUID, ok := correlation["targetUID"].(string)
@@ -230,8 +233,8 @@ func makeCreateCorrelationCommand(correlation map[string]any, SourceUID string,
 		}
 
 		// config.type is a deprecated place for this value. We will default it to "query" for legacy purposes but non-query correlations should have type outside of config
-		if config.Type != correlations.CorrelationType("query") {
-			return correlations.CreateCorrelationCommand{}, correlations.ErrInvalidConfigType
+		if config.Type != "" && config.Type != correlations.CorrelationType("query") {
+			return correlations.CreateCorrelationCommand{}, correlations.ErrConfigTypeDeprecated
 		}
 
 		createCommand.Config = config
diff --git a/pkg/tests/api/correlations/correlations_provisioning_api_test.go b/pkg/tests/api/correlations/correlations_provisioning_api_test.go
index e8c1f1a5d8a..2146652f5d4 100644
--- a/pkg/tests/api/correlations/correlations_provisioning_api_test.go
+++ b/pkg/tests/api/correlations/correlations_provisioning_api_test.go
@@ -175,6 +175,6 @@ func TestIntegrationCreateOrUpdateCorrelation(t *testing.T) {
 		})
 
 		require.Error(t, err)
-		require.ErrorIs(t, err, correlations.ErrInvalidConfigType)
+		require.ErrorIs(t, err, correlations.ErrConfigTypeDeprecated)
 	})
 }