diff --git a/modules/@angular/common/src/directives/ng_template_outlet.ts b/modules/@angular/common/src/directives/ng_template_outlet.ts
index 0804793698..9e3df0549f 100644
--- a/modules/@angular/common/src/directives/ng_template_outlet.ts
+++ b/modules/@angular/common/src/directives/ng_template_outlet.ts
@@ -15,42 +15,47 @@ import {Directive, EmbeddedViewRef, Input, OnChanges, SimpleChanges, TemplateRef
  *
  * @howToUse
  * ```
- * <template [ngTemplateOutlet]="templateRefExpression"
- *           [ngOutletContext]="objectExpression">
- * </template>
+ * <ng-container *ngTemplateOutlet="templateRefExp; context: contextExp"></ng-container>
  * ```
  *
  * @description
  *
- * You can attach a context object to the `EmbeddedViewRef` by setting `[ngOutletContext]`.
- * `[ngOutletContext]` should be an object, the object's keys will be the local template variables
- * available within the `TemplateRef`.
+ * You can attach a context object to the `EmbeddedViewRef` by setting `[ngTemplateOutletContext]`.
+ * `[ngTemplateOutletContext]` should be an object, the object's keys will be available for binding
+ * by the local template `let` declarations.
  *
  * Note: using the key `$implicit` in the context object will set it's value as default.
  *
+ * # Example
+ *
+ * {@example common/ngTemplateOutlet/ts/module.ts region='NgTemplateOutlet'}
+ *
  * @experimental
  */
 @Directive({selector: '[ngTemplateOutlet]'})
 export class NgTemplateOutlet implements OnChanges {
   private _viewRef: EmbeddedViewRef<any>;
-  private _context: Object;
-  private _templateRef: TemplateRef<any>;
+
+  @Input() public ngTemplateOutletContext: Object;
+
+  @Input() public ngTemplateOutlet: TemplateRef<any>;
 
   constructor(private _viewContainerRef: ViewContainerRef) {}
 
+  /**
+   * @deprecated v4.0.0 - Renamed to ngTemplateOutletContext.
+   */
   @Input()
-  set ngOutletContext(context: Object) { this._context = context; }
-
-  @Input()
-  set ngTemplateOutlet(templateRef: TemplateRef<Object>) { this._templateRef = templateRef; }
+  set ngOutletContext(context: Object) { this.ngTemplateOutletContext = context; }
 
   ngOnChanges(changes: SimpleChanges) {
     if (this._viewRef) {
       this._viewContainerRef.remove(this._viewContainerRef.indexOf(this._viewRef));
     }
 
-    if (this._templateRef) {
-      this._viewRef = this._viewContainerRef.createEmbeddedView(this._templateRef, this._context);
+    if (this.ngTemplateOutlet) {
+      this._viewRef = this._viewContainerRef.createEmbeddedView(
+          this.ngTemplateOutlet, this.ngTemplateOutletContext);
     }
   }
 }
diff --git a/modules/@angular/common/test/directives/ng_template_outlet_spec.ts b/modules/@angular/common/test/directives/ng_template_outlet_spec.ts
index ac1a17b816..2197cf1d55 100644
--- a/modules/@angular/common/test/directives/ng_template_outlet_spec.ts
+++ b/modules/@angular/common/test/directives/ng_template_outlet_spec.ts
@@ -84,8 +84,8 @@ export function main() {
        }));
 
     it('should display template if context is null', async(() => {
-         const template =
-             `<tpl-refs #refs="tplRefs"><template>foo</template></tpl-refs><template [ngTemplateOutlet]="currentTplRef" [ngOutletContext]="null"></template>`;
+         const template = `<tpl-refs #refs="tplRefs"><template>foo</template></tpl-refs>` +
+             `<ng-content *ngTemplateOutlet="currentTplRef; context: null"></ng-content>`;
          fixture = createTestComponent(template);
          detectChangesAndExpectText('');
 
@@ -97,7 +97,8 @@ export function main() {
 
     it('should reflect initial context and changes', async(() => {
          const template =
-             `<tpl-refs #refs="tplRefs"><template let-foo="foo"><span>{{foo}}</span></template></tpl-refs><template [ngTemplateOutlet]="currentTplRef" [ngOutletContext]="context"></template>`;
+             `<tpl-refs #refs="tplRefs"><template let-foo="foo"><span>{{foo}}</span></template></tpl-refs>` +
+             `<ng-content *ngTemplateOutlet="currentTplRef; context: context"></ng-content>`;
          fixture = createTestComponent(template);
 
          fixture.detectChanges();
@@ -114,7 +115,8 @@ export function main() {
 
     it('should reflect user defined $implicit property in the context', async(() => {
          const template =
-             `<tpl-refs #refs="tplRefs"><template let-ctx><span>{{ctx.foo}}</span></template></tpl-refs><template [ngTemplateOutlet]="currentTplRef" [ngOutletContext]="context"></template>`;
+             `<tpl-refs #refs="tplRefs"><template let-ctx><span>{{ctx.foo}}</span></template></tpl-refs>` +
+             `<ng-content *ngTemplateOutlet="currentTplRef; context: context"></ng-content>`;
          fixture = createTestComponent(template);
 
          fixture.detectChanges();
@@ -128,7 +130,8 @@ export function main() {
 
     it('should reflect context re-binding', async(() => {
          const template =
-             `<tpl-refs #refs="tplRefs"><template let-shawshank="shawshank"><span>{{shawshank}}</span></template></tpl-refs><template [ngTemplateOutlet]="currentTplRef" [ngOutletContext]="context"></template>`;
+             `<tpl-refs #refs="tplRefs"><template let-shawshank="shawshank"><span>{{shawshank}}</span></template></tpl-refs>` +
+             `<ng-content *ngTemplateOutlet="currentTplRef; context: context"></ng-content>`;
          fixture = createTestComponent(template);
 
          fixture.detectChanges();
@@ -162,4 +165,4 @@ function createTestComponent(template: string): ComponentFixture<TestComponent>
   return TestBed.overrideComponent(TestComponent, {set: {template: template}})
       .configureTestingModule({schemas: [NO_ERRORS_SCHEMA]})
       .createComponent(TestComponent);
-}
\ No newline at end of file
+}
diff --git a/modules/@angular/examples/common/ngTemplateOutlet/ts/e2e_test/ngTemplateOutlet_spec.ts b/modules/@angular/examples/common/ngTemplateOutlet/ts/e2e_test/ngTemplateOutlet_spec.ts
new file mode 100644
index 0000000000..a57ea4fc9f
--- /dev/null
+++ b/modules/@angular/examples/common/ngTemplateOutlet/ts/e2e_test/ngTemplateOutlet_spec.ts
@@ -0,0 +1,31 @@
+/**
+ * @license
+ * Copyright Google Inc. All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+
+import {$, ExpectedConditions, browser, by, element} from 'protractor';
+import {verifyNoBrowserErrors} from '../../../../_common/e2e_util';
+
+function waitForElement(selector: string) {
+  const EC = ExpectedConditions;
+  // Waits for the element with id 'abc' to be present on the dom.
+  browser.wait(EC.presenceOf($(selector)), 20000);
+}
+
+describe('ngTemplateOutlet', () => {
+  const URL = 'common/ngTemplateOutlet/ts/';
+  afterEach(verifyNoBrowserErrors);
+
+  describe('ng-template-outlet-example', () => {
+    it('should render', () => {
+      browser.get(URL);
+      waitForElement('ng-template-outlet-example');
+      expect(element.all(by.css('ng-template-outlet-example span')).getText()).toEqual([
+        'Hello', 'Hello World!', 'Ahoj Svet!'
+      ]);
+    });
+  });
+});
diff --git a/modules/@angular/examples/common/ngTemplateOutlet/ts/module.ts b/modules/@angular/examples/common/ngTemplateOutlet/ts/module.ts
new file mode 100644
index 0000000000..2f38060751
--- /dev/null
+++ b/modules/@angular/examples/common/ngTemplateOutlet/ts/module.ts
@@ -0,0 +1,49 @@
+/**
+ * @license
+ * Copyright Google Inc. All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+
+import {Component, NgModule, OnInit, TemplateRef, ViewChild} from '@angular/core';
+import {BrowserModule} from '@angular/platform-browser';
+import {Subject} from 'rxjs/Subject';
+
+
+// #docregion NgTemplateOutlet
+@Component({
+  selector: 'ng-template-outlet-example',
+  template: `
+    <ng-container *ngTemplateOutlet="greet"></ng-container>
+    <hr>
+    <ng-container *ngTemplateOutlet="eng; context: myContext"></ng-container>
+    <hr>
+    <ng-container *ngTemplateOutlet="svk; context: myContext"></ng-container>
+    <hr>
+    
+    <template #greet><span>Hello</span></template>
+    <template #eng let-name><span>Hello {{name}}!</span></template>
+    <template #svk let-person="localSk"><span>Ahoj {{person}}!</span></template>
+`
+})
+class NgTemplateOutletExample {
+  myContext = {$implicit: 'World', localSk: 'Svet'};
+}
+// #enddocregion
+
+
+@Component({
+  selector: 'example-app',
+  template: `<ng-template-outlet-example></ng-template-outlet-example>`
+})
+class ExampleApp {
+}
+
+@NgModule({
+  imports: [BrowserModule],
+  declarations: [ExampleApp, NgTemplateOutletExample],
+  bootstrap: [ExampleApp]
+})
+export class AppModule {
+}
diff --git a/tools/public_api_guard/common/index.d.ts b/tools/public_api_guard/common/index.d.ts
index f3bd7a4200..595497fc86 100644
--- a/tools/public_api_guard/common/index.d.ts
+++ b/tools/public_api_guard/common/index.d.ts
@@ -188,8 +188,9 @@ export declare class NgSwitchDefault {
 
 /** @experimental */
 export declare class NgTemplateOutlet implements OnChanges {
-    ngOutletContext: Object;
-    ngTemplateOutlet: TemplateRef<Object>;
+    /** @deprecated */ ngOutletContext: Object;
+    ngTemplateOutlet: TemplateRef<any>;
+    ngTemplateOutletContext: Object;
     constructor(_viewContainerRef: ViewContainerRef);
     ngOnChanges(changes: SimpleChanges): void;
 }