diff --git a/doc/whatsnew/fragments/7565.false_positive b/doc/whatsnew/fragments/7565.false_positive
new file mode 100644
index 0000000000..647eb4611f
--- /dev/null
+++ b/doc/whatsnew/fragments/7565.false_positive
@@ -0,0 +1,3 @@
+Fix computation of never-returning function: `Never` is handled in addition to `NoReturn`, and priority is given to the explicit `--never-returning-functions` option.
+
+Closes #7565.
diff --git a/pylint/checkers/refactoring/refactoring_checker.py b/pylint/checkers/refactoring/refactoring_checker.py
index edfff0385e..1af9ce6006 100644
--- a/pylint/checkers/refactoring/refactoring_checker.py
+++ b/pylint/checkers/refactoring/refactoring_checker.py
@@ -2054,17 +2054,21 @@ def _is_function_def_never_returning(
         Returns:
             bool: True if the function never returns, False otherwise.
         """
-        if isinstance(node, (nodes.FunctionDef, astroid.BoundMethod)) and node.returns:
-            return (
+        try:
+            if node.qname() in self._never_returning_functions:
+                return True
+        except (TypeError, AttributeError):
+            pass
+        return (
+            isinstance(node, (nodes.FunctionDef, astroid.BoundMethod))
+            and node.returns
+            and (
                 isinstance(node.returns, nodes.Attribute)
-                and node.returns.attrname == "NoReturn"
+                and node.returns.attrname in {"NoReturn", "Never"}
                 or isinstance(node.returns, nodes.Name)
-                and node.returns.name == "NoReturn"
+                and node.returns.name in {"NoReturn", "Never"}
             )
-        try:
-            return node.qname() in self._never_returning_functions
-        except (TypeError, AttributeError):
-            return False
+        )
 
     def _check_return_at_the_end(self, node: nodes.FunctionDef) -> None:
         """Check for presence of a *single* return statement at the end of a
diff --git a/tests/functional/i/inconsistent/inconsistent_returns_noreturn.py b/tests/functional/i/inconsistent/inconsistent_returns_noreturn.py
index 13878aad69..329fbf39a7 100644
--- a/tests/functional/i/inconsistent/inconsistent_returns_noreturn.py
+++ b/tests/functional/i/inconsistent/inconsistent_returns_noreturn.py
@@ -3,6 +3,7 @@
 
 import sys
 import typing
+import typing_extensions
 
 def parser_error(msg) -> typing.NoReturn:  # pylint: disable=unused-argument
     sys.exit(1)
@@ -11,7 +12,7 @@ def parser_error_nortype(msg):  # pylint: disable=unused-argument
     sys.exit(2)
 
 
-from typing import NoReturn  # pylint: disable=wrong-import-position
+from typing import NoReturn  # pylint: disable=wrong-import-position,wrong-import-order
 
 def parser_error_name(msg) -> NoReturn:  # pylint: disable=unused-argument
     sys.exit(3)
@@ -95,3 +96,22 @@ def bug_pylint_8747_incorrect_annotation(self, s: str) -> int:
             return n
         except ValueError:
             self._falsely_no_return_method()
+
+# https://github.com/pylint-dev/pylint/issues/7565
+def never_is_handled_like_noreturn(arg: typing.Union[int, str]) -> int:
+    if isinstance(arg, int):
+        return 1
+    if isinstance(arg, str):
+        return 2
+    typing_extensions.assert_never(arg)
+
+
+def declared_to_not_return() -> None:
+    return
+
+def config_takes_precedence_over_inference(arg: typing.Union[int, str]) -> int:
+    if isinstance(arg, int):
+        return 1
+    if isinstance(arg, str):
+        return 2
+    declared_to_not_return()
diff --git a/tests/functional/i/inconsistent/inconsistent_returns_noreturn.rc b/tests/functional/i/inconsistent/inconsistent_returns_noreturn.rc
index dd6cbb5989..fdeed8ed4d 100644
--- a/tests/functional/i/inconsistent/inconsistent_returns_noreturn.rc
+++ b/tests/functional/i/inconsistent/inconsistent_returns_noreturn.rc
@@ -1,2 +1,2 @@
 [REFACTORING]
-never-returning-functions=sys.exit,sys.getdefaultencoding
+never-returning-functions=sys.exit,sys.getdefaultencoding,inconsistent_returns_noreturn.declared_to_not_return
diff --git a/tests/functional/i/inconsistent/inconsistent_returns_noreturn.txt b/tests/functional/i/inconsistent/inconsistent_returns_noreturn.txt
index e2ad258f72..96571e325e 100644
--- a/tests/functional/i/inconsistent/inconsistent_returns_noreturn.txt
+++ b/tests/functional/i/inconsistent/inconsistent_returns_noreturn.txt
@@ -1,2 +1,2 @@
-inconsistent-return-statements:32:0:32:25:bug_pylint_4122_wrong:Either all return statements in a function should return an expression, or none of them should.:UNDEFINED
-inconsistent-return-statements:77:4:77:29:ClassUnderTest.bug_pylint_8747_wrong:Either all return statements in a function should return an expression, or none of them should.:UNDEFINED
+inconsistent-return-statements:33:0:33:25:bug_pylint_4122_wrong:Either all return statements in a function should return an expression, or none of them should.:UNDEFINED
+inconsistent-return-statements:78:4:78:29:ClassUnderTest.bug_pylint_8747_wrong:Either all return statements in a function should return an expression, or none of them should.:UNDEFINED