diff --git a/.gitignore b/.gitignore
index 5fc934a2c..5a51f9fd2 100644
--- a/.gitignore
+++ b/.gitignore
@@ -157,3 +157,4 @@ tools/watchgnupg
 tools/gpgtar
 private-keys-v1.d/
 x.parm
+/VERSION
diff --git a/Makefile.am b/Makefile.am
index 2d07ad272..89e20778b 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -25,7 +25,7 @@ GITLOG_TO_CHANGELOG=gitlog-to-changelog
 
 EXTRA_DIST = build-aux/config.rpath build-aux/potomo autogen.sh autogen.rc
 	     ChangeLog-2011 po/ChangeLog-2011 build-aux/ChangeLog-2011 \
-	     build-aux/gitlog-to-changelog \
+	     VERSION build-aux/gitlog-to-changelog \
 	     build-aux/git-log-fix build-aux/git-log-footer \
 	     build-aux/speedo.mk README.GIT
 
@@ -93,7 +93,6 @@ dist_doc_DATA = README
 
 
 dist-hook: gen-ChangeLog
-	echo "$(VERSION)" > $(distdir)/VERSION
 
 if HAVE_W32_SYSTEM
 install-data-hook:
diff --git a/configure.ac b/configure.ac
index 02e02bb1e..ec259c322 100644
--- a/configure.ac
+++ b/configure.ac
@@ -47,7 +47,7 @@ m4_define([mym4_isbeta],       m4_argn(2, mym4_verslist))
 m4_define([mym4_version],      m4_argn(4, mym4_verslist))
 m4_define([mym4_revision],     m4_argn(7, mym4_verslist))
 m4_define([mym4_revision_dec], m4_argn(8, mym4_verslist))
-
+m4_esyscmd([echo ]mym4_version[>VERSION])
 AC_INIT([mym4_package],[mym4_version], [http://bugs.gnupg.org])
 
 NEED_GPG_ERROR_VERSION=1.13