diff --git a/changelog/5113.bugfix.rst b/changelog/5113.bugfix.rst
new file mode 100644
index 000000000..713b48967
--- /dev/null
+++ b/changelog/5113.bugfix.rst
@@ -0,0 +1 @@
+Deselected items from plugins using ``pytest_collect_modifyitems`` as a hookwrapper are correctly reported now.
diff --git a/src/_pytest/terminal.py b/src/_pytest/terminal.py
index 8d2d65da5..3e43bbc9f 100644
--- a/src/_pytest/terminal.py
+++ b/src/_pytest/terminal.py
@@ -552,10 +552,6 @@ class TerminalReporter(object):
         else:
             self.write_line(line)
 
-    @pytest.hookimpl(trylast=True)
-    def pytest_collection_modifyitems(self):
-        self.report_collect(True)
-
     @pytest.hookimpl(trylast=True)
     def pytest_sessionstart(self, session):
         self._session = session
@@ -608,6 +604,8 @@ class TerminalReporter(object):
         return result
 
     def pytest_collection_finish(self, session):
+        self.report_collect(True)
+
         if self.config.getoption("collectonly"):
             self._printcollecteditems(session.items)
 
diff --git a/testing/test_terminal.py b/testing/test_terminal.py
index de1da0249..d602f03ec 100644
--- a/testing/test_terminal.py
+++ b/testing/test_terminal.py
@@ -506,6 +506,37 @@ class TestTerminalFunctional(object):
         )
         assert result.ret == 0
 
+    def test_deselected_with_hookwrapper(self, testdir):
+        testpath = testdir.makeconftest(
+            """
+            import pytest
+
+            @pytest.hookimpl(hookwrapper=True)
+            def pytest_collection_modifyitems(config, items):
+                yield
+                deselected = items.pop()
+                config.hook.pytest_deselected(items=[deselected])
+            """
+        )
+        testpath = testdir.makepyfile(
+            """
+                def test_one():
+                    pass
+                def test_two():
+                    pass
+                def test_three():
+                    pass
+           """
+        )
+        result = testdir.runpytest(testpath)
+        result.stdout.fnmatch_lines(
+            [
+                "collected 3 items / 1 deselected / 2 selected",
+                "*= 2 passed, 1 deselected in*",
+            ]
+        )
+        assert result.ret == 0
+
     def test_show_deselected_items_using_markexpr_before_test_execution(self, testdir):
         testdir.makepyfile(
             test_show_deselected="""