diff --git a/zerver/lib/actions.py b/zerver/lib/actions.py
index 1c1dc814ab..7f0a948cc1 100644
--- a/zerver/lib/actions.py
+++ b/zerver/lib/actions.py
@@ -1,4 +1,5 @@
 import datetime
+import hashlib
 import itertools
 import logging
 import os
@@ -232,7 +233,6 @@ from zerver.models import (
     is_cross_realm_bot_email,
     query_for_ids,
     realm_filters_for_realm,
-    stream_name_in_use,
     validate_attachment_request,
 )
 from zerver.tornado.django_api import send_event
@@ -1237,17 +1237,13 @@ def do_deactivate_stream(
     # special prefix that both indicates that the stream is deactivated and
     # frees up the original name for reuse.
     old_name = stream.name
-    new_name = ("!DEACTIVATED:" + old_name)[: Stream.MAX_NAME_LENGTH]
-    for i in range(20):
-        if stream_name_in_use(new_name, stream.realm_id):
-            # This stream has already been deactivated, keep prepending !s until
-            # we have a unique stream name or you've hit a rename limit.
-            new_name = ("!" + new_name)[: Stream.MAX_NAME_LENGTH]
-        else:
-            break
 
-    # If you don't have a unique name at this point, this will fail later in the
-    # code path.
+    # Prepend a substring of the hashed stream ID to the new stream name
+    streamID = str(stream.id)
+    stream_id_hash_object = hashlib.sha512(streamID.encode("utf-8"))
+    hashed_stream_id = stream_id_hash_object.hexdigest()[0:7]
+
+    new_name = (hashed_stream_id + "!DEACTIVATED:" + old_name)[: Stream.MAX_NAME_LENGTH]
 
     stream.name = new_name[: Stream.MAX_NAME_LENGTH]
     stream.save(update_fields=["name", "deactivated", "invite_only"])
diff --git a/zerver/models.py b/zerver/models.py
index c47c4c05a8..490c8525d4 100644
--- a/zerver/models.py
+++ b/zerver/models.py
@@ -1863,13 +1863,6 @@ def get_realm_stream(stream_name: str, realm_id: int) -> Stream:
     return Stream.objects.select_related().get(name__iexact=stream_name.strip(), realm_id=realm_id)
 
 
-def stream_name_in_use(stream_name: str, realm_id: int) -> bool:
-    return Stream.objects.filter(
-        name__iexact=stream_name.strip(),
-        realm_id=realm_id,
-    ).exists()
-
-
 def get_active_streams(realm: Optional[Realm]) -> QuerySet:
     # TODO: Change return type to QuerySet[Stream]
     # NOTE: Return value is used as a QuerySet, so cannot currently be Sequence[QuerySet]
diff --git a/zerver/tests/test_subs.py b/zerver/tests/test_subs.py
index 340dfaa3a6..20ae882c63 100644
--- a/zerver/tests/test_subs.py
+++ b/zerver/tests/test_subs.py
@@ -1,3 +1,4 @@
+import hashlib
 import random
 from datetime import timedelta
 from typing import Any, Dict, List, Mapping, Optional, Sequence, Set, Union
@@ -1330,7 +1331,8 @@ class StreamAdminTest(ZulipTestCase):
 
         # Simulate that a stream by the same name has already been
         # deactivated, just to exercise our renaming logic:
-        ensure_stream(realm, "!DEACTIVATED:" + active_name)
+        # Since we do not know the id of these simulated stream we prepend the name with a random hashed_stream_id
+        ensure_stream(realm, "DB32B77" + "!DEACTIVATED:" + active_name)
 
         events: List[Mapping[str, Any]] = []
         with tornado_redirected_to_list(events):
@@ -1352,7 +1354,8 @@ class StreamAdminTest(ZulipTestCase):
 
         # A deleted stream's name is changed, is deactivated, is invite-only,
         # and has no subscribers.
-        deactivated_stream_name = "!!DEACTIVATED:" + active_name
+        hashed_stream_id = hashlib.sha512(str(stream_id).encode("utf-8")).hexdigest()[0:7]
+        deactivated_stream_name = hashed_stream_id + "!DEACTIVATED:" + active_name
         deactivated_stream = get_stream(deactivated_stream_name, realm)
         self.assertTrue(deactivated_stream.deactivated)
         self.assertTrue(deactivated_stream.invite_only)