diff --git a/configure.ac b/configure.ac
index 7ab94e79..9974abb4 100644
--- a/configure.ac
+++ b/configure.ac
@@ -881,7 +881,7 @@ AC_CONFIG_FILES([lang/Makefile lang/cl/Makefile lang/cl/gpgme.asd])
 AM_COND_IF([HAVE_DOXYGEN], [AC_CONFIG_FILES([lang/qt/doc/Doxyfile])])
 AC_CONFIG_FILES(lang/qt/doc/Makefile)
 AC_CONFIG_FILES([lang/python/Makefile
-		 lang/python/gpg/version.py
+		 lang/python/version.py
 		 lang/python/tests/Makefile])
 AC_CONFIG_FILES([lang/python/setup.py], [chmod a+x lang/python/setup.py])
 AC_OUTPUT
diff --git a/lang/python/MANIFEST.in b/lang/python/MANIFEST.in
index ff38172d..c34e84a2 100644
--- a/lang/python/MANIFEST.in
+++ b/lang/python/MANIFEST.in
@@ -1,4 +1,5 @@
 recursive-include examples *.py
 include gpgme.i
 include helpers.c helpers.h private.h
+include version.py
 recursive-include gpg *.py
diff --git a/lang/python/Makefile.am b/lang/python/Makefile.am
index 42beeee2..4ebd214e 100644
--- a/lang/python/Makefile.am
+++ b/lang/python/Makefile.am
@@ -22,28 +22,19 @@ EXTRA_DIST = \
 	gpgme.i \
 	helpers.c helpers.h private.h \
 	examples \
-	gpg
+	src
 
 SUBDIRS = . tests
 
-COPY_FILES_GPG = \
-	$(srcdir)/gpg/callbacks.py \
-	$(srcdir)/gpg/constants \
-	$(srcdir)/gpg/core.py \
-	$(srcdir)/gpg/errors.py \
-	$(srcdir)/gpg/__init__.py \
-	$(srcdir)/gpg/results.py \
-	$(srcdir)/gpg/util.py
-
 .PHONY: prepare
 prepare: copystamp
 
 # For VPATH builds we need to copy some files because Python's
 # distutils are not VPATH-aware.
 copystamp:
-	ln -sf "$(abs_top_srcdir)/src/data.h" .
-	ln -sf "$(abs_top_builddir)/config.h" .
-	if test $(srcdir) != . ; then cp -R $(COPY_FILES_GPG) gpg ; fi
+	ln -sf "$(top_srcdir)/src/data.h" .
+	ln -sf "$(top_builddir)/config.h" .
+	ln -sf "$(srcdir)/src" gpg
 	touch $@
 
 all-local: copystamp
@@ -51,7 +42,7 @@ all-local: copystamp
 	  PYTHON="$$1" ; shift ; \
 	  CFLAGS="$(CFLAGS)" \
 	  srcdir="$(srcdir)" \
-	  abs_top_builddir="$(abs_top_builddir)" \
+	  top_builddir="$(top_builddir)" \
 	    $$PYTHON setup.py build --verbose --build-base=python$${VERSION}-gpg ; \
 	done
 
@@ -59,7 +50,7 @@ python$(PYTHON_VERSION)-gpg/dist/gpg-$(VERSION).tar.gz.asc: copystamp
 	$(MKDIR_P) python$(PYTHON_VERSION)-gpg-dist
 	CFLAGS="$(CFLAGS)" \
 	srcdir="$(srcdir)" \
-	abs_top_builddir="$(abs_top_builddir)" \
+	top_builddir="$(top_builddir)" \
 	  $(PYTHON) setup.py sdist --verbose --dist-dir=python$(PYTHON_VERSION)-gpg-dist \
 		--manifest=python$(PYTHON_VERSION)-gpg-dist/MANIFEST
 	gpg2 --detach-sign --armor python$(PYTHON_VERSION)-gpg-dist/gpg-$(VERSION).tar.gz
@@ -75,6 +66,7 @@ upload: python$(PYTHON_VERSION)-gpg-dist/gpg-$(VERSION).tar.gz \
 CLEANFILES = copystamp \
 	config.h \
 	data.h \
+	gpg \
 	files.txt \
 	install_files.txt
 
@@ -84,22 +76,16 @@ CLEANFILES = copystamp \
 # permissions.
 clean-local:
 	rm -rf -- build
-	if test $(srcdir) != . ; then \
-	  find gpg -type d ! -perm -200 -exec chmod u+w {} ';' ; \
-	  for FILE in $(COPY_FILES_GPG); do \
-	    rm -rf -- gpg/$$(basename $$FILE) ; \
-	  done \
-	fi
 	for VERSION in $(PYTHON_VERSIONS); do \
-	  find python$${VERSION}-gpg -type d ! -perm -200 -exec chmod u+w {} ';' ; \
-	  rm -rf -- python$${VERSION}-gpg ; \
+	  find python$${VERSION}-gpg* -type d ! -perm -200 -exec chmod u+w {} ';' ; \
+	  rm -rf -- python$${VERSION}-gpg* ; \
 	done
 
 install-exec-local:
 	set -e ; set $(PYTHONS); for VERSION in $(PYTHON_VERSIONS); do \
 	  PYTHON="$$1" ; shift ; \
 	  srcdir="$(srcdir)" \
-	  abs_top_builddir="$(abs_top_builddir)" \
+	  top_builddir="$(top_builddir)" \
 	  $$PYTHON setup.py \
 	  build \
 	  --build-base=python$${VERSION}-gpg \
@@ -110,6 +96,6 @@ install-exec-local:
 
 uninstall-local:
 	GV=$$(echo $(VERSION) | tr - _); for PV in $(PYTHON_VERSIONS); do \
-	  rm -rf -- "$(DESTDIR)$(prefix)/lib/python$$PV/site-packages/gpg" \
-"$(DESTDIR)$(prefix)/lib/python$$PV/site-packages/gpg-$$GV-py$$PV.egg-info" ; \
+	  rm -rf -- "$(DESTDIR)$(prefix)"/lib*/python$$PV/site-packages/gpg \
+"$(DESTDIR)$(prefix)"/lib*/python$$PV/site-packages/gpg-$$GV-py$$PV.egg-info ; \
 	done
diff --git a/lang/python/setup.py.in b/lang/python/setup.py.in
index 2114aafe..5d94c704 100755
--- a/lang/python/setup.py.in
+++ b/lang/python/setup.py.in
@@ -38,18 +38,17 @@ gpgme_config = ["gpgme-config"] + gpgme_config_flags
 gpgme_h = ""
 include_dirs = [os.getcwd()]
 library_dirs = []
-vpath_build = os.environ.get('srcdir', '.') != '.'
 in_tree = False
 extra_swig_opts = []
 extra_macros = dict()
 
-abs_top_builddir = os.environ.get("abs_top_builddir")
-if abs_top_builddir:
+top_builddir = os.environ.get("top_builddir")
+if top_builddir:
     # In-tree build.
     in_tree = True
-    gpgme_config = [os.path.join(abs_top_builddir, "src/gpgme-config")] + gpgme_config_flags
-    gpgme_h = os.path.join(abs_top_builddir, "src/gpgme.h")
-    library_dirs = [os.path.join(abs_top_builddir, "src/.libs")] # XXX uses libtool internals
+    gpgme_config = [os.path.join(top_builddir, "src/gpgme-config")] + gpgme_config_flags
+    gpgme_h = os.path.join(top_builddir, "src/gpgme.h")
+    library_dirs = [os.path.join(top_builddir, "src/.libs")] # XXX uses libtool internals
     extra_macros.update(
         HAVE_CONFIG_H=1,
         HAVE_DATA_H=1,
@@ -210,23 +209,21 @@ class BuildExtFirstHack(build):
         # Copy due to http://bugs.python.org/issue2624
         # Avoid creating in srcdir
         for source, target in ((in_srcdir(n), in_build_base(n))
-                               for n in ('gpgme.i', 'helpers.c')):
+                               for n in ('gpgme.i', 'helpers.c', 'private.h', 'helpers.h')):
             if not up_to_date(source, target):
                 shutil.copy2(source, target)
 
-    def run(self):
-        self._generate()
-
         # Append generated files via build_base
         if not os.path.exists(os.path.join(self.build_lib, "gpg")):
             os.makedirs(os.path.join(self.build_lib, "gpg"))
+        shutil.copy2("version.py", os.path.join(self.build_lib, "gpg"))
+
+    def run(self):
+        self._generate()
 
         swig_sources.append(os.path.join(self.build_base, 'gpgme.i'))
         swig_opts.extend(['-I' + self.build_base,
-                          '-I' + in_srcdir('.'),
                           '-outdir', os.path.join(self.build_lib, 'gpg')])
-        if vpath_build:
-            include_dirs.append(in_srcdir('.'))
         include_dirs.append(self.build_base)
 
         self.run_command('build_ext')
diff --git a/lang/python/gpg/__init__.py b/lang/python/src/__init__.py
similarity index 100%
rename from lang/python/gpg/__init__.py
rename to lang/python/src/__init__.py
diff --git a/lang/python/gpg/callbacks.py b/lang/python/src/callbacks.py
similarity index 100%
rename from lang/python/gpg/callbacks.py
rename to lang/python/src/callbacks.py
diff --git a/lang/python/gpg/constants/__init__.py b/lang/python/src/constants/__init__.py
similarity index 100%
rename from lang/python/gpg/constants/__init__.py
rename to lang/python/src/constants/__init__.py
diff --git a/lang/python/gpg/constants/create.py b/lang/python/src/constants/create.py
similarity index 100%
rename from lang/python/gpg/constants/create.py
rename to lang/python/src/constants/create.py
diff --git a/lang/python/gpg/constants/data/__init__.py b/lang/python/src/constants/data/__init__.py
similarity index 100%
rename from lang/python/gpg/constants/data/__init__.py
rename to lang/python/src/constants/data/__init__.py
diff --git a/lang/python/gpg/constants/data/encoding.py b/lang/python/src/constants/data/encoding.py
similarity index 100%
rename from lang/python/gpg/constants/data/encoding.py
rename to lang/python/src/constants/data/encoding.py
diff --git a/lang/python/gpg/constants/event.py b/lang/python/src/constants/event.py
similarity index 100%
rename from lang/python/gpg/constants/event.py
rename to lang/python/src/constants/event.py
diff --git a/lang/python/gpg/constants/import.py b/lang/python/src/constants/import.py
similarity index 100%
rename from lang/python/gpg/constants/import.py
rename to lang/python/src/constants/import.py
diff --git a/lang/python/gpg/constants/keylist/__init__.py b/lang/python/src/constants/keylist/__init__.py
similarity index 100%
rename from lang/python/gpg/constants/keylist/__init__.py
rename to lang/python/src/constants/keylist/__init__.py
diff --git a/lang/python/gpg/constants/keylist/mode.py b/lang/python/src/constants/keylist/mode.py
similarity index 100%
rename from lang/python/gpg/constants/keylist/mode.py
rename to lang/python/src/constants/keylist/mode.py
diff --git a/lang/python/gpg/constants/keysign.py b/lang/python/src/constants/keysign.py
similarity index 100%
rename from lang/python/gpg/constants/keysign.py
rename to lang/python/src/constants/keysign.py
diff --git a/lang/python/gpg/constants/md.py b/lang/python/src/constants/md.py
similarity index 100%
rename from lang/python/gpg/constants/md.py
rename to lang/python/src/constants/md.py
diff --git a/lang/python/gpg/constants/pk.py b/lang/python/src/constants/pk.py
similarity index 100%
rename from lang/python/gpg/constants/pk.py
rename to lang/python/src/constants/pk.py
diff --git a/lang/python/gpg/constants/protocol.py b/lang/python/src/constants/protocol.py
similarity index 100%
rename from lang/python/gpg/constants/protocol.py
rename to lang/python/src/constants/protocol.py
diff --git a/lang/python/gpg/constants/sig/__init__.py b/lang/python/src/constants/sig/__init__.py
similarity index 100%
rename from lang/python/gpg/constants/sig/__init__.py
rename to lang/python/src/constants/sig/__init__.py
diff --git a/lang/python/gpg/constants/sig/mode.py b/lang/python/src/constants/sig/mode.py
similarity index 100%
rename from lang/python/gpg/constants/sig/mode.py
rename to lang/python/src/constants/sig/mode.py
diff --git a/lang/python/gpg/constants/sig/notation.py b/lang/python/src/constants/sig/notation.py
similarity index 100%
rename from lang/python/gpg/constants/sig/notation.py
rename to lang/python/src/constants/sig/notation.py
diff --git a/lang/python/gpg/constants/sigsum.py b/lang/python/src/constants/sigsum.py
similarity index 100%
rename from lang/python/gpg/constants/sigsum.py
rename to lang/python/src/constants/sigsum.py
diff --git a/lang/python/gpg/constants/status.py b/lang/python/src/constants/status.py
similarity index 100%
rename from lang/python/gpg/constants/status.py
rename to lang/python/src/constants/status.py
diff --git a/lang/python/gpg/constants/tofu/__init__.py b/lang/python/src/constants/tofu/__init__.py
similarity index 100%
rename from lang/python/gpg/constants/tofu/__init__.py
rename to lang/python/src/constants/tofu/__init__.py
diff --git a/lang/python/gpg/constants/tofu/policy.py b/lang/python/src/constants/tofu/policy.py
similarity index 100%
rename from lang/python/gpg/constants/tofu/policy.py
rename to lang/python/src/constants/tofu/policy.py
diff --git a/lang/python/gpg/constants/validity.py b/lang/python/src/constants/validity.py
similarity index 100%
rename from lang/python/gpg/constants/validity.py
rename to lang/python/src/constants/validity.py
diff --git a/lang/python/gpg/core.py b/lang/python/src/core.py
similarity index 100%
rename from lang/python/gpg/core.py
rename to lang/python/src/core.py
diff --git a/lang/python/gpg/errors.py b/lang/python/src/errors.py
similarity index 100%
rename from lang/python/gpg/errors.py
rename to lang/python/src/errors.py
diff --git a/lang/python/gpg/results.py b/lang/python/src/results.py
similarity index 100%
rename from lang/python/gpg/results.py
rename to lang/python/src/results.py
diff --git a/lang/python/gpg/util.py b/lang/python/src/util.py
similarity index 100%
rename from lang/python/gpg/util.py
rename to lang/python/src/util.py
diff --git a/lang/python/gpg/version.py.in b/lang/python/version.py.in
similarity index 100%
rename from lang/python/gpg/version.py.in
rename to lang/python/version.py.in