Unlike the answer of @Martin-Honnen, this solution produces exactly the desired result -- the necessary namespace nodes remain where they are and are not moved down.
Also, this solution correctly deals with attributes that are in a namespace:
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output omit-xml-declaration="yes" indent="yes"/>
<xsl:strip-space elements="*"/>
<xsl:template match="node()|@*" priority="-2">
<xsl:copy>
<xsl:apply-templates select="node()|@*"/>
</xsl:copy>
</xsl:template>
<xsl:template match="*">
<xsl:element name="{name()}" namespace="{namespace-uri()}">
<xsl:variable name="vtheElem" select="."/>
<xsl:for-each select="namespace::*">
<xsl:variable name="vPrefix" select="name()"/>
<xsl:if test=
"$vtheElem/descendant::*
[(namespace-uri()=current()
and
substring-before(name(),':') = $vPrefix)
or
@*[substring-before(name(),':') = $vPrefix]
]
">
<xsl:copy-of select="."/>
</xsl:if>
</xsl:for-each>
<xsl:apply-templates select="node()|@*"/>
</xsl:element>
</xsl:template>
</xsl:stylesheet>
when this transformation is applied on the following XML document (the provided XML document with an added namespaced attribute):
<ns1:Envelope xmlns:ns1="http://www.a.com" xmlns:ns2="http://www.b.com" xmlns:ns3="http://www.c.com" xmlns:ns4="http://www.d.com">
<ns1:Body ns2:x="1">
<ns2:a>
<ns2:b>data1</ns2:b>
<ns2:c>data2</ns2:c>
</ns2:a>
</ns1:Body>
</ns1:Envelope>
the desired, correct result is produced:
<ns1:Envelope xmlns:ns1="http://www.a.com" xmlns:ns2="http://www.b.com">
<ns1:Body ns2:x="1">
<ns2:a>
<ns2:b>data1</ns2:b>
<ns2:c>data2</ns2:c>
</ns2:a>
</ns1:Body>
</ns1:Envelope>
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