diff --git a/src/test/groovy/WithOtelEnvStepTests.groovy b/src/test/groovy/WithOtelEnvStepTests.groovy
index 8936cd168..4295acd1b 100644
--- a/src/test/groovy/WithOtelEnvStepTests.groovy
+++ b/src/test/groovy/WithOtelEnvStepTests.groovy
@@ -42,4 +42,20 @@ class WithOtelEnvStepTests extends ApmBasePipelineTest {
     assertTrue(assertMethodCallContainsPattern('error', 'withOtelEnv: opentelemetry plugin is not available'))
     assertJobStatusFailure()
   }
+
+  @Test
+  void test_env_variable_defined() throws Exception {
+    addEnvVar('OTEL_EXPORTER_OTLP_HEADERS', 'foo')
+    try {
+      script.call(){
+        //NOOP
+      }
+    } catch(e){
+      //NOOP
+    }
+    printCallStack()
+    assertTrue(assertMethodCallContainsPattern('error', 'withOtelEnv: OTEL_EXPORTER_OTLP_HEADERS env variable is already defined'))
+    assertJobStatusFailure()
+  }
+
 }
diff --git a/vars/README.md b/vars/README.md
index bef3dac0b..1c023e288 100644
--- a/vars/README.md
+++ b/vars/README.md
@@ -3141,7 +3141,7 @@ environment variables:
 
 * `OTEL_EXPORTER_OTLP_ENDPOINT`
 * `OTEL_SERVICE_NAME`
-* `OTEL_TOKEN_ID`
+* `OTEL_EXPORTER_OTLP_HEADERS`
 
 ```
   withOtelEnv() {
diff --git a/vars/withOtelEnv.groovy b/vars/withOtelEnv.groovy
index 5ef194b56..16473a1f6 100644
--- a/vars/withOtelEnv.groovy
+++ b/vars/withOtelEnv.groovy
@@ -33,6 +33,10 @@ def call(Map args = [:], Closure body) {
     error('withOtelEnv: opentelemetry plugin is not available')
   }
 
+  if (env.OTEL_EXPORTER_OTLP_HEADERS?.trim()) {
+    error('withOtelEnv: OTEL_EXPORTER_OTLP_HEADERS env variable is already defined.')
+  }
+
   def otelPlugin = getOtelPlugin()
 
   // In case the credentialsId argument was not passed, then let's use the
@@ -44,12 +48,13 @@ def call(Map args = [:], Closure body) {
     }
   }
 
-  // Then, mask and provide the environemnt variables.
-  withEnvMask(vars: [
-                [var: "OTEL_EXPORTER_OTLP_ENDPOINT", password: otelPlugin.getEndpoint()],
-                [var: "OTEL_SERVICE_NAME", password: otelPlugin.getServiceName()],
-              ]) {
-    withCredentials([string(credentialsId: credentialsId, variable: 'OTEL_TOKEN_ID')]) {
+  // Then, mask and provide the environment variables.
+  withCredentials([string(credentialsId: credentialsId, variable: 'OTEL_TOKEN_ID')]) {
+    withEnvMask(vars: [
+      [var: 'OTEL_EXPORTER_OTLP_ENDPOINT', password: otelPlugin.getEndpoint()],
+      [var: 'OTEL_SERVICE_NAME', password: otelPlugin.getServiceName()],
+      [var: 'OTEL_EXPORTER_OTLP_HEADERS', password: "authorization=Bearer ${env.OTEL_TOKEN_ID}"]
+    ]) {
       body()
     }
   }
diff --git a/vars/withOtelEnv.txt b/vars/withOtelEnv.txt
index bb116cc06..7a67097b4 100644
--- a/vars/withOtelEnv.txt
+++ b/vars/withOtelEnv.txt
@@ -3,7 +3,7 @@ environment variables:
 
 * `OTEL_EXPORTER_OTLP_ENDPOINT`
 * `OTEL_SERVICE_NAME`
-* `OTEL_TOKEN_ID`
+* `OTEL_EXPORTER_OTLP_HEADERS`
 
 ```
   withOtelEnv() {