Here is a simplified version of the config.I get 405 (Method not allowed).Documentation for the module say that the error happen if the request method is not POST

http://www.grid.net.ru/nginx/upload.en.html


server {
listen 443 http2;
location = /upload {
proxy_pass http://mywebsite.com/upload;
}
}

server {
listen 80;
server_name mywebsite.com;
location = /upload {
#module settings goes here
upload_pass @uploadhandler;
}

location @uploadhandler {
root /var/www/mywebsite.com/public_html/www;
rewrite ^ /upload.php last;
}

}

Thanks for the help Lukas