diff --git a/src/west/app/project.py b/src/west/app/project.py
index c9ea044d..7da55808 100644
--- a/src/west/app/project.py
+++ b/src/west/app/project.py
@@ -817,6 +817,10 @@ def init_state(self, args):
 
         self.narrow = args.narrow or config.getboolean('update', 'narrow',
                                                        fallback=False)
+        self.path_cache = args.path_cache or config.get('update', 'path-cache',
+                                                        fallback=None)
+        self.name_cache = args.name_cache or config.get('update', 'name-cache',
+                                                        fallback=None)
 
         self.group_filter: List[str] = []
 
@@ -1151,26 +1155,29 @@ def init_project(self, project):
     def project_cache(self, project):
         # Find the absolute path to a pre-existing local clone of a project
         # and return it. If the search fails, return None.
-        name_cache, path_cache = self.args.name_cache, self.args.path_cache
 
-        if name_cache is not None:
-            maybe = Path(name_cache) / project.name
+        if self.name_cache is not None:
+            maybe = Path(self.name_cache) / project.name
             if maybe.is_dir():
-                log.dbg(f'found {project.name} in --name-cache {name_cache}',
-                        level=log.VERBOSE_VERY)
+                log.dbg(
+                    f'found {project.name} in --name-cache {self.name_cache}',
+                    level=log.VERBOSE_VERY)
                 return os.fspath(maybe)
             else:
-                log.dbg(f'{project.name} not in --name-cache {name_cache}',
-                        level=log.VERBOSE_VERY)
-        elif self.args.path_cache is not None:
-            maybe = Path(self.args.path_cache) / project.path
+                log.dbg(
+                    f'{project.name} not in --name-cache {self.name_cache}',
+                    level=log.VERBOSE_VERY)
+        elif self.path_cache is not None:
+            maybe = Path(self.path_cache) / project.path
             if maybe.is_dir():
-                log.dbg(f'found {project.path} in --path-cache {path_cache}',
-                        level=log.VERBOSE_VERY)
+                log.dbg(
+                    f'found {project.path} in --path-cache {self.path_cache}',
+                    level=log.VERBOSE_VERY)
                 return os.fspath(maybe)
             else:
-                log.dbg(f'{project.path} not in --path-cache {path_cache}',
-                        level=log.VERBOSE_VERY)
+                log.dbg(
+                    f'{project.path} not in --path-cache {self.path_cache}',
+                    level=log.VERBOSE_VERY)
 
         return None
 
diff --git a/tests/test_project.py b/tests/test_project.py
index 3160ac68..4a40a2ac 100644
--- a/tests/test_project.py
+++ b/tests/test_project.py
@@ -969,23 +969,34 @@ def test_update_name_cache(tmpdir):
     # network if it doesn't have to.
 
     name_cache_dir = tmpdir / 'name_cache'
-
     create_repo(name_cache_dir / 'foo')
     create_repo(name_cache_dir / 'bar')
-
     foo_head = rev_parse(name_cache_dir / 'foo', 'HEAD')
     bar_head = rev_parse(name_cache_dir / 'bar', 'HEAD')
 
     workspace = tmpdir / 'workspace'
     setup_cache_workspace(workspace, foo_head, bar_head)
-
-    cmd(f'update --name-cache {name_cache_dir}', cwd=workspace)
-
-    assert (workspace / 'subdir' / 'foo').check(dir=1)
-    assert (workspace / 'bar').check(dir=1)
-
-    assert rev_parse(workspace / 'subdir' / 'foo', 'HEAD') == foo_head
-    assert rev_parse(workspace / 'bar', 'HEAD') == bar_head
+    workspace.chdir()
+    foo = workspace / 'subdir' / 'foo'
+    bar = workspace / 'bar'
+
+    # Test the command line option.
+    cmd(f'update --name-cache {name_cache_dir}')
+    assert foo.check(dir=1)
+    assert bar.check(dir=1)
+    assert rev_parse(foo, 'HEAD') == foo_head
+    assert rev_parse(bar, 'HEAD') == bar_head
+
+    # Move the repositories out of the way and test the configuration option.
+    # (We can't use shutil.rmtree here because Windows.)
+    shutil.move(os.fspath(foo), os.fspath(tmpdir))
+    shutil.move(os.fspath(bar), os.fspath(tmpdir))
+    cmd(f'config update.name-cache {name_cache_dir}')
+    cmd('update')
+    assert foo.check(dir=1)
+    assert bar.check(dir=1)
+    assert rev_parse(foo, 'HEAD') == foo_head
+    assert rev_parse(bar, 'HEAD') == bar_head
 
 
 def test_update_path_cache(tmpdir):
@@ -993,23 +1004,34 @@ def test_update_path_cache(tmpdir):
     # network if it doesn't have to.
 
     path_cache_dir = tmpdir / 'path_cache_dir'
-
     create_repo(path_cache_dir / 'subdir' / 'foo')
     create_repo(path_cache_dir / 'bar')
-
     foo_head = rev_parse(path_cache_dir / 'subdir' / 'foo', 'HEAD')
     bar_head = rev_parse(path_cache_dir / 'bar', 'HEAD')
 
     workspace = tmpdir / 'workspace'
     setup_cache_workspace(workspace, foo_head, bar_head)
-
-    cmd(f'update --path-cache {path_cache_dir}', cwd=workspace)
-
-    assert (workspace / 'subdir' / 'foo').check(dir=1)
-    assert (workspace / 'bar').check(dir=1)
-
-    assert rev_parse(workspace / 'subdir' / 'foo', 'HEAD') == foo_head
-    assert rev_parse(workspace / 'bar', 'HEAD') == bar_head
+    workspace.chdir()
+    foo = workspace / 'subdir' / 'foo'
+    bar = workspace / 'bar'
+
+    # Test the command line option.
+    cmd(f'update --path-cache {path_cache_dir}')
+    assert foo.check(dir=1)
+    assert bar.check(dir=1)
+    assert rev_parse(foo, 'HEAD') == foo_head
+    assert rev_parse(bar, 'HEAD') == bar_head
+
+    # Move the repositories out of the way and test the configuration option.
+    # (We can't use shutil.rmtree here because Windows.)
+    shutil.move(os.fspath(foo), os.fspath(tmpdir))
+    shutil.move(os.fspath(bar), os.fspath(tmpdir))
+    cmd(f'config update.path-cache {path_cache_dir}')
+    cmd('update')
+    assert foo.check(dir=1)
+    assert bar.check(dir=1)
+    assert rev_parse(foo, 'HEAD') == foo_head
+    assert rev_parse(bar, 'HEAD') == bar_head
 
 
 def setup_narrow(tmpdir):