diff --git a/tools/internal_ci/linux/grpc_portability.sh b/tools/internal_ci/linux/grpc_portability.sh
index 58d3c58e707f9ecee31fc918d2e89dd21ac814ec..613d5615f2c1d18175f155d3ee4593a3cb7af771 100755
--- a/tools/internal_ci/linux/grpc_portability.sh
+++ b/tools/internal_ci/linux/grpc_portability.sh
@@ -37,4 +37,4 @@ git submodule update --init
 
 # download docker images from dockerhub
 export DOCKERHUB_ORGANIZATION=grpctesting
-tools/run_tests/run_tests_matrix.py -f portability linux
+tools/run_tests/run_tests_matrix.py -f portability linux --internal_ci
diff --git a/tools/internal_ci/linux/grpc_portability_build_only.sh b/tools/internal_ci/linux/grpc_portability_build_only.sh
index 80b5c4cb9600292ee3933802b20ccbfc418a1d83..787f0302c088726ce0374256f5a34031e4bb9a75 100755
--- a/tools/internal_ci/linux/grpc_portability_build_only.sh
+++ b/tools/internal_ci/linux/grpc_portability_build_only.sh
@@ -37,4 +37,4 @@ git submodule update --init
 
 # download docker images from dockerhub
 export DOCKERHUB_ORGANIZATION=grpctesting
-tools/run_tests/run_tests_matrix.py -f portability linux --build_only
+tools/run_tests/run_tests_matrix.py -f portability linux --internal_ci --build_only
diff --git a/tools/run_tests/python_utils/report_utils.py b/tools/run_tests/python_utils/report_utils.py
index 3b2b4f87129fc1ae43ab5e2476bc72f9096f2d76..c7c0ceea92d77cb45a72c6b24dc61e94e18b5bfe 100644
--- a/tools/run_tests/python_utils/report_utils.py
+++ b/tools/run_tests/python_utils/report_utils.py
@@ -77,6 +77,10 @@ def render_junit_xml_report(resultset, xml_report, suite_package='grpc',
         ET.SubElement(xml_test, 'error', message='Timeout')
       elif result.state == 'SKIPPED':
         ET.SubElement(xml_test, 'skipped', message='Skipped')
+  # ensure the report directory exists
+  report_dir = os.path.dirname(os.path.abspath(xml_report))
+  if not os.path.exists(report_dir):
+    os.makedirs(report_dir)
   tree = ET.ElementTree(root)
   tree.write(xml_report, encoding='UTF-8')
 
diff --git a/tools/run_tests/run_tests_matrix.py b/tools/run_tests/run_tests_matrix.py
index 02f0ec5eff16ae82bd90312dc98957d4d2786d0d..70340cd747d85a524dfbda7bb357db14cb9a38ba 100755
--- a/tools/run_tests/run_tests_matrix.py
+++ b/tools/run_tests/run_tests_matrix.py
@@ -55,6 +55,16 @@ _DEFAULT_INNER_JOBS = 2
 _REPORT_SUFFIX = 'sponge_log.xml'
 
 
+def _report_filename(name):
+  """Generates report file name"""
+  return 'report_%s_%s' % (name, _REPORT_SUFFIX)
+
+
+def _report_filename_internal_ci(name):
+  """Generates report file name that leads to better presentation by internal CI"""
+  return '%s/%s' % (name, _REPORT_SUFFIX)
+
+
 def _docker_jobspec(name, runtests_args=[], runtests_envs={},
                     inner_jobs=_DEFAULT_INNER_JOBS):
   """Run a single instance of run_tests.py in a docker container"""
@@ -63,7 +73,7 @@ def _docker_jobspec(name, runtests_args=[], runtests_envs={},
                    '--use_docker',
                    '-t',
                    '-j', str(inner_jobs),
-                   '-x', 'report_%s_%s' % (name, _REPORT_SUFFIX),
+                   '-x', _report_filename(name),
                    '--report_suite_name', '%s' % name] + runtests_args,
           environ=runtests_envs,
           shortname='run_tests_%s' % name,
@@ -83,7 +93,7 @@ def _workspace_jobspec(name, runtests_args=[], workspace_name=None,
                    'tools/run_tests/helper_scripts/run_tests_in_workspace.sh',
                    '-t',
                    '-j', str(inner_jobs),
-                   '-x', '../report_%s_%s' % (name, _REPORT_SUFFIX),
+                   '-x', '../%s' % _report_filename(name),
                    '--report_suite_name', '%s' % name] + runtests_args,
           environ=env,
           shortname='run_tests_%s' % name,
@@ -380,8 +390,17 @@ if __name__ == "__main__":
   argp.add_argument('--max_time', default=-1, type=int,
                     help='Maximum amount of time to run tests for' +
                          '(other tests will be skipped)')
+  argp.add_argument('--internal_ci',
+                    default=False,
+                    action='store_const',
+                    const=True,
+                    help='Put reports into subdirectories to improve presentation of '
+                    'results by Internal CI.')
   args = argp.parse_args()
 
+  if args.internal_ci:
+    _report_filename = _report_filename_internal_ci  # override the function
+
   extra_args = []
   if args.build_only:
     extra_args.append('--build_only')
@@ -450,7 +469,7 @@ if __name__ == "__main__":
     ignored_num_skipped_failures, skipped_results = jobset.run(
         skipped_jobs, skip_jobs=True)
     resultset.update(skipped_results)
-  report_utils.render_junit_xml_report(resultset, 'report_%s' % _REPORT_SUFFIX,
+  report_utils.render_junit_xml_report(resultset, _report_filename('aggregate_tests'),
                                        suite_name='aggregate_tests')
 
   if num_failures == 0: