diff --git a/python/semantic_kernel/template_engine/blocks/named_arg_block.py b/python/semantic_kernel/template_engine/blocks/named_arg_block.py
index 80941d120b9f..2d9afda5ac94 100644
--- a/python/semantic_kernel/template_engine/blocks/named_arg_block.py
+++ b/python/semantic_kernel/template_engine/blocks/named_arg_block.py
@@ -18,7 +18,7 @@
 
 logger: logging.Logger = logging.getLogger(__name__)
 
-NAMED_ARG_REGEX = r"^(?P<name>[0-9A-Za-z_]+)[=]{1}(?P<value>[${1}](?P<var_name>[0-9A-Za-z_]+)|(?P<quote>[\"'])(?P<val>.[^\"^']*)(?P=quote))$"  # noqa: E501
+NAMED_ARG_REGEX = r"^(?P<name>[0-9A-Za-z_]+)[=]{1}(?P<value>[$](?P<var_name>[0-9A-Za-z_]+)|(?P<quote>[\"'])(?P<val>.[^\"^']*)(?P=quote))$"  # noqa: E501
 
 NAMED_ARG_MATCHER = compile(NAMED_ARG_REGEX)