diff --git a/packages/eslint/src/generators/utils/eslint-file.ts b/packages/eslint/src/generators/utils/eslint-file.ts
index c18ea2b8dd900..7f3e7d2d5d935 100644
--- a/packages/eslint/src/generators/utils/eslint-file.ts
+++ b/packages/eslint/src/generators/utils/eslint-file.ts
@@ -207,7 +207,7 @@ function overrideNeedsCompat(
   override: Linter.ConfigOverride<Linter.RulesRecord>
 ) {
   return (
-    !override.env && !override.extends && !override.plugins && !override.parser
+    override.env || override.extends || override.plugins || override.parser
   );
 }
 
@@ -229,7 +229,12 @@ export function updateOverrideInLintConfig(
     updateJson(tree, fileName, (json: Linter.Config) => {
       const index = json.overrides.findIndex(lookup);
       if (index !== -1) {
-        json.overrides[index] = update(json.overrides[index]);
+        const newOverride = update(json.overrides[index]);
+        if (newOverride) {
+          json.overrides[index] = newOverride;
+        } else {
+          json.overrides.splice(index, 1);
+        }
       }
       return json;
     });
@@ -301,10 +306,9 @@ export function addExtendsToLintConfig(
   if (useFlatConfig(tree)) {
     const fileName = joinPathFragments(root, 'eslint.config.js');
     const pluginExtends = generatePluginExtendsElement(plugins);
-    tree.write(
-      fileName,
-      addBlockToFlatConfigExport(tree.read(fileName, 'utf8'), pluginExtends)
-    );
+    let content = tree.read(fileName, 'utf8');
+    content = addCompatToFlatConfig(content);
+    tree.write(fileName, addBlockToFlatConfigExport(content, pluginExtends));
   } else {
     const fileName = joinPathFragments(root, '.eslintrc.json');
     updateJson(tree, fileName, (json) => {
diff --git a/packages/eslint/src/generators/utils/flat-config/ast-utils.ts b/packages/eslint/src/generators/utils/flat-config/ast-utils.ts
index a4a2b0e9b89ef..34f3cb91273ed 100644
--- a/packages/eslint/src/generators/utils/flat-config/ast-utils.ts
+++ b/packages/eslint/src/generators/utils/flat-config/ast-utils.ts
@@ -125,7 +125,7 @@ export function replaceOverride(
   content: string,
   root: string,
   lookup: (override: Linter.ConfigOverride<Linter.RulesRecord>) => boolean,
-  update: (
+  update?: (
     override: Linter.ConfigOverride<Linter.RulesRecord>
   ) => Linter.ConfigOverride<Linter.RulesRecord>
 ): string {
@@ -167,12 +167,14 @@ export function replaceOverride(
           length: end - start,
         });
         const updatedData = update(data);
-        mapFilePaths(updatedData);
-        changes.push({
-          type: ChangeType.Insert,
-          index: start,
-          text: JSON.stringify(updatedData, null, 2).slice(2, -2), // remove curly braces and start/end line breaks since we are injecting just properties
-        });
+        if (updatedData) {
+          mapFilePaths(updatedData);
+          changes.push({
+            type: ChangeType.Insert,
+            index: start,
+            text: JSON.stringify(updatedData, null, 2).slice(2, -2), // remove curly braces and start/end line breaks since we are injecting just properties
+          });
+        }
       }
     }
   });
diff --git a/packages/next/migrations.json b/packages/next/migrations.json
index e198c0fcbbb41..17a141efc96e4 100644
--- a/packages/next/migrations.json
+++ b/packages/next/migrations.json
@@ -23,6 +23,12 @@
       "version": "16.4.0-beta.3",
       "description": "Update package.json moving @nx/next from dependency to devDependency",
       "implementation": "./src/migrations/update-16-4-0/update-nx-next-dependency"
+    },
+    "update-17-2-7": {
+      "cli": "nx",
+      "version": "17.2.7",
+      "description": "Remove patched eslint rule for @next/next/no-html-link-for-pages",
+      "implementation": "./src/migrations/update-17-2-7/remove-eslint-rules-patch"
     }
   },
   "packageJsonUpdates": {
diff --git a/packages/next/src/generators/application/application.spec.ts b/packages/next/src/generators/application/application.spec.ts
index 4f451d4d49559..0d8569d018139 100644
--- a/packages/next/src/generators/application/application.spec.ts
+++ b/packages/next/src/generators/application/application.spec.ts
@@ -626,14 +626,6 @@ describe('app', () => {
               ".next/**/*",
             ],
             "overrides": [
-              {
-                "files": [
-                  "*.*",
-                ],
-                "rules": {
-                  "@next/next/no-html-link-for-pages": "off",
-                },
-              },
               {
                 "files": [
                   "*.ts",
diff --git a/packages/next/src/generators/application/lib/add-linting.spec.ts b/packages/next/src/generators/application/lib/add-linting.spec.ts
index 0e452f60391fe..06c15274252b1 100644
--- a/packages/next/src/generators/application/lib/add-linting.spec.ts
+++ b/packages/next/src/generators/application/lib/add-linting.spec.ts
@@ -62,14 +62,6 @@ describe('updateEslint', () => {
           ".next/**/*",
         ],
         "overrides": [
-          {
-            "files": [
-              "*.*",
-            ],
-            "rules": {
-              "@next/next/no-html-link-for-pages": "off",
-            },
-          },
           {
             "files": [
               "*.ts",
@@ -132,10 +124,6 @@ describe('updateEslint', () => {
         
 
       module.exports = [
-      {
-          files: ["**/*.*"],
-          rules: { "@next/next/no-html-link-for-pages": "off" }
-      },
           ...baseConfig,
           {
         "files": [
diff --git a/packages/next/src/generators/application/lib/add-linting.ts b/packages/next/src/generators/application/lib/add-linting.ts
index 0a0267a841938..7cb008901a83c 100644
--- a/packages/next/src/generators/application/lib/add-linting.ts
+++ b/packages/next/src/generators/application/lib/add-linting.ts
@@ -38,19 +38,6 @@ export async function addLinting(
       'next/core-web-vitals',
     ]);
 
-    // Turn off @next/next/no-html-link-for-pages since there is an issue with nextjs throwing linting errors
-    // TODO(nicholas): remove after Vercel updates nextjs linter to only lint ["*.ts", "*.tsx", "*.js", "*.jsx"]
-    addOverrideToLintConfig(
-      host,
-      options.appProjectRoot,
-      {
-        files: ['*.*'],
-        rules: {
-          '@next/next/no-html-link-for-pages': 'off',
-        },
-      },
-      { insertAtTheEnd: false }
-    );
     updateOverrideInLintConfig(
       host,
       options.appProjectRoot,
diff --git a/packages/next/src/migrations/update-17-2-7/remove-eslint-rules-patch.spec.ts b/packages/next/src/migrations/update-17-2-7/remove-eslint-rules-patch.spec.ts
new file mode 100644
index 0000000000000..cf91c1e1abcbd
--- /dev/null
+++ b/packages/next/src/migrations/update-17-2-7/remove-eslint-rules-patch.spec.ts
@@ -0,0 +1,142 @@
+import { Tree, addProjectConfiguration, writeJson } from '@nx/devkit';
+import { createTreeWithEmptyWorkspace } from 'nx/src/devkit-testing-exports';
+
+import update from './remove-eslint-rules-patch';
+import { readJson } from '@nx/devkit';
+
+describe('update-nx-next-dependency', () => {
+  let tree: Tree;
+
+  beforeEach(() => {
+    tree = createTreeWithEmptyWorkspace();
+  });
+
+  it('should remove @next/next/no-html-link-for-pages in json configs', async () => {
+    tree.write('.eslintrc.json', '{}');
+
+    addProjectConfiguration(tree, 'my-pkg', {
+      root: 'packages/my-pkg',
+    });
+    writeJson(tree, `packages/my-pkg/.eslintrc.json`, {
+      root: true,
+      ignorePatterns: ['!**/*'],
+      plugins: ['@nx'],
+      overrides: [
+        {
+          files: ['**/*.ts', '**/*.tsx', '**/*.js', '**/*.jsx'],
+          rules: {
+            '@next/next/no-html-link-for-pages': ['error', 'apps/lint/pages'],
+            'no-console': 'error',
+          },
+        },
+        {
+          files: ['**/*.*'],
+          rules: { '@next/next/no-html-link-for-pages': 'off' },
+        },
+        {
+          files: ['**/*.ts', '**/*.tsx'],
+          rules: {},
+        },
+        {
+          files: ['**/*.js', '**/*.jsx'],
+          rules: {},
+        },
+      ],
+    });
+
+    await update(tree);
+
+    expect(readJson(tree, `packages/my-pkg/.eslintrc.json`).overrides)
+      .toMatchInlineSnapshot(`
+      [
+        {
+          "files": [
+            "**/*.ts",
+            "**/*.tsx",
+            "**/*.js",
+            "**/*.jsx",
+          ],
+          "rules": {
+            "@next/next/no-html-link-for-pages": [
+              "error",
+              "apps/lint/pages",
+            ],
+            "no-console": "error",
+          },
+        },
+        {
+          "files": [
+            "**/*.ts",
+            "**/*.tsx",
+          ],
+          "rules": {},
+        },
+        {
+          "files": [
+            "**/*.js",
+            "**/*.jsx",
+          ],
+          "rules": {},
+        },
+      ]
+    `);
+  });
+
+  it('should remove @next/next/no-html-link-for-pages in flat configs', async () => {
+    tree.write('eslint.config.js', 'module.exports = []');
+
+    addProjectConfiguration(tree, 'my-pkg', {
+      root: 'packages/my-pkg',
+    });
+    tree.write(
+      `packages/my-pkg/eslint.config.js`,
+      `const { FlatCompat } = require('@eslint/eslintrc');
+    const baseConfig = require('../../eslint.config.js');
+    const js = require('@eslint/js');
+
+    const compat = new FlatCompat({
+      baseDirectory: __dirname,
+      recommendedConfig: js.configs.recommended,
+    });
+
+    module.exports = [
+      ...baseConfig,
+      ...compat.extends(
+        'plugin:@nx/react-typescript',
+        'next',
+        'next/core-web-vitals'
+      ),
+      {
+        files: ['**/*.*'],
+        rules: { '@next/next/no-html-link-for-pages': 'off' },
+      },
+      {
+        files: ['**/*.ts', '**/*.tsx', '**/*.js', '**/*.jsx'],
+        rules: {
+          '@next/next/no-html-link-for-pages': ['error', 'apps/lint/pages'],
+          'no-console': 'error',
+        },
+      },
+      {
+        files: ['**/*.ts', '**/*.tsx'],
+        rules: {},
+      },
+      {
+        files: ['**/*.js', '**/*.jsx'],
+        rules: {},
+      },
+      ...compat.config({ env: { jest: true } }).map((config) => ({
+        ...config,
+        files: ['**/*.spec.ts', '**/*.spec.tsx', '**/*.spec.js', '**/*.spec.jsx'],
+      })),
+      { ignores: ['.next/**/*'] },
+    ];`
+    );
+
+    await update(tree);
+
+    expect(
+      tree.read(`packages/my-pkg/eslint.config.js`, 'utf-8')
+    ).not.toContain("'@next/next/no-html-link-for-pages': 'off'");
+  });
+});
diff --git a/packages/next/src/migrations/update-17-2-7/remove-eslint-rules-patch.ts b/packages/next/src/migrations/update-17-2-7/remove-eslint-rules-patch.ts
new file mode 100644
index 0000000000000..8b9ff201ebd1a
--- /dev/null
+++ b/packages/next/src/migrations/update-17-2-7/remove-eslint-rules-patch.ts
@@ -0,0 +1,18 @@
+import { Tree, formatFiles, getProjects } from '@nx/devkit';
+import { updateOverrideInLintConfig } from '@nx/eslint/src/generators/utils/eslint-file';
+
+export default async function update(tree: Tree) {
+  const projects = getProjects(tree);
+  projects.forEach((project) => {
+    updateOverrideInLintConfig(
+      tree,
+      project.root,
+      (o) =>
+        o.rules?.['@next/next/no-html-link-for-pages'] &&
+        o.files?.includes('**/*.*'),
+      (o) => undefined
+    );
+  });
+
+  await formatFiles(tree);
+}