The reaction of N-aminomorpholine (I) with potassium cyanide and formaldehyde in water gives N-morpholino-2-aminoacetonitrile (II), which is nitrosated by reaction with NaNO2 - HCl in water yielding N-nitroso-N-morpholino-2-aminoacetonitrile (III). Finally, this compound is cyclized by treatment with HCl in methanol.