diff --git a/.codacy/cli-config.yaml b/.codacy/cli-config.yaml
new file mode 100644
index 00000000..6ae4b29d
--- /dev/null
+++ b/.codacy/cli-config.yaml
@@ -0,0 +1 @@
+mode: local
\ No newline at end of file
diff --git a/cmd/init.go b/cmd/init.go
index 203b799d..ca09413a 100644
--- a/cmd/init.go
+++ b/cmd/init.go
@@ -32,11 +32,13 @@ var initCmd = &cobra.Command{
 
 		config.Config.CreateLocalCodacyDir()
 
-		if len(codacyRepositoryToken) == 0 {
+		cliLocalMode := len(codacyRepositoryToken) == 0
+
+		if cliLocalMode {
 			fmt.Println()
 			fmt.Println("ℹ️  No project token was specified, skipping fetch configurations")
 			noTools := []tools.Tool{}
-			err := createConfigurationFile(noTools)
+			err := createConfigurationFiles(noTools, cliLocalMode)
 			if err != nil {
 				log.Fatal(err)
 			}
@@ -45,7 +47,7 @@ var initCmd = &cobra.Command{
 			if err != nil {
 				log.Fatal(err)
 			}
-			err = createConfigurationFile(apiTools)
+			err = createConfigurationFiles(apiTools, cliLocalMode)
 			if err != nil {
 				log.Fatal(err)
 			}
@@ -64,7 +66,7 @@ var initCmd = &cobra.Command{
 	},
 }
 
-func createConfigurationFile(tools []tools.Tool) error {
+func createConfigurationFiles(tools []tools.Tool, cliLocalMode bool) error {
 	configFile, err := os.Create(config.Config.ProjectConfigFile())
 	defer configFile.Close()
 	if err != nil {
@@ -76,6 +78,17 @@ func createConfigurationFile(tools []tools.Tool) error {
 		log.Fatal(err)
 	}
 
+	cliConfigFile, err := os.Create(config.Config.CliConfigFile())
+	defer cliConfigFile.Close()
+	if err != nil {
+		log.Fatal(err)
+	}
+
+	_, err = cliConfigFile.WriteString(cliConfigFileTemplate(cliLocalMode))
+	if err != nil {
+		log.Fatal(err)
+	}
+
 	return nil
 }
 
@@ -113,9 +126,21 @@ tools:
 `, eslintVersion, trivyVersion, pylintVersion, pmdVersion)
 }
 
+func cliConfigFileTemplate(cliLocalMode bool) string {
+	var cliModeString string
+
+	if cliLocalMode {
+		cliModeString = "local"
+	} else {
+		cliModeString = "remote"
+	}
+
+	return fmt.Sprintf(`mode: %s`, cliModeString)
+}
+
 func buildRepositoryConfigurationFiles(token string) error {
-	fmt.Println("Building project configuration files ...")
-	fmt.Println("Fetching project configuration from codacy ...")
+	fmt.Println("Building repository configuration files ...")
+	fmt.Println("Fetching repository configuration from codacy ...")
 
 	// API call to fetch settings
 	url := CodacyApiBase + "/2.0/project/analysis/configuration"
diff --git a/config/config.go b/config/config.go
index 3abd16df..8bff582d 100644
--- a/config/config.go
+++ b/config/config.go
@@ -16,6 +16,7 @@ type ConfigType struct {
 	toolsDirectory       string
 	localCodacyDirectory string
 	projectConfigFile    string
+	cliConfigFile        string
 
 	runtimes map[string]*plugins.RuntimeInfo
 	tools    map[string]*plugins.ToolInfo
@@ -45,6 +46,10 @@ func (c *ConfigType) ProjectConfigFile() string {
 	return c.projectConfigFile
 }
 
+func (c *ConfigType) CliConfigFile() string {
+	return c.cliConfigFile
+}
+
 func (c *ConfigType) Runtimes() map[string]*plugins.RuntimeInfo {
 	return c.runtimes
 }
@@ -89,14 +94,8 @@ func (c *ConfigType) setupCodacyPaths() {
 	c.toolsDirectory = filepath.Join(c.globalCacheDirectory, "tools")
 	c.localCodacyDirectory = ".codacy"
 
-	yamlPath := filepath.Join(c.localCodacyDirectory, "codacy.yaml")
-	ymlPath := filepath.Join(c.localCodacyDirectory, "codacy.yml")
-
-	if _, err := os.Stat(ymlPath); err == nil {
-		c.projectConfigFile = ymlPath
-	} else {
-		c.projectConfigFile = yamlPath
-	}
+	c.projectConfigFile = filepath.Join(c.localCodacyDirectory, "codacy.yaml")
+	c.cliConfigFile = filepath.Join(c.localCodacyDirectory, "cli-config.yaml")
 }
 
 func (c *ConfigType) CreateCodacyDirs() error {