(defun mtm-hook()
  ;; In a multi-term, we strip out any "-nw" or "--no-window-system"
  ;; flags that are present in the EDITOR and VISUAL environment
  ;; variables, to avoid getting trapped inside a double-emacs-nw.
  (setq editor (getenv "EDITOR"))
  (setq editor (replace-regexp-in-string " -nw" "" editor))
  (setq editor (replace-regexp-in-string " --no-window-system" "" editor))
  (setenv "EDITOR" editor)

  (setq visual (getenv "VISUAL"))
  (setq visual (replace-regexp-in-string " -nw" "" visual))
  (setq visual (replace-regexp-in-string " --no-window-system" "" visual))
  (setenv "VISUAL" visual)
)

(add-hook 'term-mode-hook (function mtm-hook))