diff --git a/NEWS b/NEWS
index 200e1aa2b..0feecb4e1 100644
--- a/NEWS
+++ b/NEWS
@@ -29,7 +29,11 @@ Noteworthy changes in version 2.1.x (under development)
    option --enable-standard-socket may now be used to use this feature
    by default.
 
- * Dirmngr is now a part of this package.
+ * Dirmngr is now a part of this package.  Dirmngr is now also
+   expected to run as a system service and the configuraion
+   directories are changed to the gnupg name space.
+
+ * Given sufficient permissions Dirmngr is started automagically.
 
 
 Noteworthy changes in version 2.0.13 (2009-09-04)
diff --git a/common/ChangeLog b/common/ChangeLog
index 281dd64c6..070305370 100644
--- a/common/ChangeLog
+++ b/common/ChangeLog
@@ -1,3 +1,11 @@
+2010-08-16  Werner Koch  <wk@g10code.com>
+
+	* asshelp.c (lock_agent_t): Rename to lock_spawn_t.
+	(lock_agent_spawning, unlock_agent_spawning): Factor code out to ...
+	(lock_spawning, unlock_spawning): .. new.
+	(start_new_gpg_agent): Make more use of ERRSOURCE.
+	(start_new_dirmngr): New.
+
 2010-08-13  Werner Koch  <wk@g10code.com>
 
 	* Makefile.am (audit-events.h, status-codes.h): Fix srcdir problem
diff --git a/common/asshelp.c b/common/asshelp.c
index 882c15479..b98825bd3 100644
--- a/common/asshelp.c
+++ b/common/asshelp.c
@@ -37,9 +37,9 @@
 
 /* The type we use for lock_agent_spawning.  */
 #ifdef HAVE_W32_SYSTEM
-# define lock_agent_t HANDLE
+# define lock_spawn_t HANDLE
 #else
-# define lock_agent_t dotlock_t
+# define lock_spawn_t dotlock_t
 #endif
 
 
@@ -216,21 +216,26 @@ send_pinentry_environment (assuan_context_t ctx,
 }
 
 
-/* Lock the agent spawning process.  The caller needs to provide the
-   address of a variable to store the lock information.  */
+/* Lock a spawning process.  The caller needs to provide the address
+   of a variable to store the lock information and the name or the
+   process.  */
 static gpg_error_t
-lock_agent_spawning (lock_agent_t *lock, const char *homedir)
+lock_spawning (lock_spawn_t *lock, const char *homedir, const char *name)
 {
 #ifdef HAVE_W32_SYSTEM
   int waitrc;
-
+  
   (void)homedir; /* Not required. */
 
-  *lock = CreateMutexW (NULL, FALSE, L"GnuPG_spawn_agent_sentinel");
+  *lock = CreateMutexW 
+    (NULL, FALSE,
+     !strcmp (name, "agent")?   L"GnuPG_spawn_agent_sentinel":
+     !strcmp (name, "dirmngr")? L"GnuPG_spawn_dirmngr_sentinel":
+     /*                    */   L"GnuPG_spawn_unknown_sentinel");
   if (!*lock)
     {
-      log_error ("failed to create the spawn_agent mutex: %s\n",
-                 w32_strerror (-1));
+      log_error ("failed to create the spawn_%s mutex: %s\n",
+                 name, w32_strerror (-1));
       return gpg_error (GPG_ERR_GENERAL);
     }
 
@@ -239,17 +244,22 @@ lock_agent_spawning (lock_agent_t *lock, const char *homedir)
     return 0;
 
   if (waitrc == WAIT_TIMEOUT)
-    log_info ("error waiting for the spawn_agent mutex: timeout\n");
+    log_info ("error waiting for the spawn_%s mutex: timeout\n", name);
   else
-    log_info ("error waiting for the spawn_agent mutex: "
-              "(code=%d) %s\n", waitrc, w32_strerror (-1));
+    log_info ("error waiting for the spawn_%s mutex: (code=%d) %s\n", 
+              name, waitrc, w32_strerror (-1));
   return gpg_error (GPG_ERR_GENERAL);
 #else /*!HAVE_W32_SYSTEM*/
   char *fname;
 
   *lock = NULL;
 
-  fname = make_filename (homedir, "gnupg_spawn_agent_sentinel", NULL);
+  fname = make_filename
+    (homedir,
+     !strcmp (name, "agent")?   "gnupg_spawn_agent_sentinel":
+     !strcmp (name, "dirmngr")? "gnupg_spawn_dirmngr_sentinel":
+     /*                    */   "gnupg_spawn_unknown_sentinel",
+     NULL);
   if (!fname)
     return gpg_error_from_syserror ();
 
@@ -270,22 +280,38 @@ lock_agent_spawning (lock_agent_t *lock, const char *homedir)
 
 /* Unlock the spawning process.  */
 static void
-unlock_agent_spawning (lock_agent_t *lock)
+unlock_spawning (lock_spawn_t *lock, const char *name)
 {
   if (*lock)
     {
 #ifdef HAVE_W32_SYSTEM
       if (!ReleaseMutex (*lock))
-        log_error ("failed to release the spawn_agent mutex: %s\n",
-                   w32_strerror (-1));
+        log_error ("failed to release the spawn_%s mutex: %s\n",
+                   name, w32_strerror (-1));
       CloseHandle (*lock);
 #else /*!HAVE_W32_SYSTEM*/
+      (void)name;
       destroy_dotlock (*lock);
 #endif /*!HAVE_W32_SYSTEM*/
       *lock = NULL;
     }
 }
 
+/* Lock the agent spawning process.  The caller needs to provide the
+   address of a variable to store the lock information.  */
+static gpg_error_t
+lock_agent_spawning (lock_spawn_t *lock, const char *homedir)
+{
+  return lock_spawning (lock, homedir, "agent");
+}
+
+
+static void
+unlock_agent_spawning (lock_spawn_t *lock)
+{
+  unlock_spawning (lock, "agent");
+}
+
 
 /* Try to connect to the agent via socket or fork it off and work by
    pipes.  Handle the server's initial greeting.  Returns a new assuan
@@ -336,8 +362,12 @@ start_new_gpg_agent (assuan_context_t *r_ctx,
       if (err)
         {
           /* With no success start a new server.  */
+          if (!agent_program || !*agent_program)
+            agent_program = gnupg_module_name (GNUPG_MODULE_NAME_AGENT);
+
           if (verbose)
-            log_info (_("no running gpg-agent - starting one\n"));
+            log_info (_("no running %s - starting `%s'\n"),
+                      "gpg-agent",  agent_program);
           
           if (status_cb)
             status_cb (status_cb_arg, STATUS_PROGRESS, 
@@ -345,7 +375,8 @@ start_new_gpg_agent (assuan_context_t *r_ctx,
           
           if (fflush (NULL))
             {
-              gpg_error_t tmperr = gpg_error (gpg_err_code_from_errno (errno));
+              gpg_error_t tmperr = gpg_err_make (errsource,
+                                                 gpg_err_code_from_syserror ());
               log_error ("error flushing pending output: %s\n",
                          strerror (errno));
               xfree (sockname);
@@ -353,9 +384,6 @@ start_new_gpg_agent (assuan_context_t *r_ctx,
               return tmperr;
             }
           
-          if (!agent_program || !*agent_program)
-            agent_program = gnupg_module_name (GNUPG_MODULE_NAME_AGENT);
-
           argv[0] = "--use-standard-socket-p"; 
           argv[1] = NULL;  
           err = gnupg_spawn_process_fd (agent_program, argv, -1, -1, -1, &pid);
@@ -376,7 +404,7 @@ start_new_gpg_agent (assuan_context_t *r_ctx,
                  standard socket, an environment variable is not
                  required and thus we we can savely start the agent
                  here.  */
-              lock_agent_t lock;
+              lock_spawn_t lock;
 
               argv[0] = "--daemon";
               argv[1] = "--use-standard-socket"; 
@@ -394,8 +422,8 @@ start_new_gpg_agent (assuan_context_t *r_ctx,
                       int i;
 
                       if (verbose)
-                        log_info (_("waiting %d seconds for the agent "
-                                    "to come up\n"), 5);
+                        log_info (_("waiting %d seconds for the %s "
+                                    "to come up\n"), 5, "agent" );
                       for (i=0; i < 5; i++)
                         {
                           gnupg_sleep (1);
@@ -481,7 +509,7 @@ start_new_gpg_agent (assuan_context_t *r_ctx,
     {
       log_error ("can't connect to the agent: %s\n", gpg_strerror (err));
       assuan_release (ctx);
-      return gpg_error (GPG_ERR_NO_AGENT);
+      return gpg_err_make (errsource, GPG_ERR_NO_AGENT);
     }
 
   if (debug)
@@ -503,3 +531,107 @@ start_new_gpg_agent (assuan_context_t *r_ctx,
   return 0;
 }
 
+
+/* Try to connect to the dirmngr via a socket.  On platforms
+   supporting it, start it up if needed.  Returns a new assuan context
+   at R_CTX or an error code. */
+gpg_error_t
+start_new_dirmngr (assuan_context_t *r_ctx,
+                   gpg_err_source_t errsource,
+                   const char *homedir,
+                   const char *dirmngr_program,
+                   int verbose, int debug,
+                   gpg_error_t (*status_cb)(ctrl_t, int, ...),
+                   ctrl_t status_cb_arg)
+{
+  gpg_error_t err;
+  assuan_context_t ctx;
+  const char *sockname;
+  lock_spawn_t lock;
+      
+  *r_ctx = NULL;
+
+  err = assuan_new (&ctx);
+  if (err)
+    {
+      log_error ("error allocating assuan context: %s\n", gpg_strerror (err));
+      return err;
+    }
+
+  sockname = dirmngr_socket_name ();
+  err = assuan_socket_connect (ctx, sockname, 0, 0);
+  if (err)
+    {
+      const char *argv[2];
+
+      /* With no success try start a new Dirmngr.  On most systems
+         this will fail because the Dirmngr is expected to be a system
+         service.  However on Wince we don't distinguish users and
+         thus we can start it.  A future extension might be to use the
+         userv system to start the Dirmngr as a system service.  */
+      if (!dirmngr_program || !*dirmngr_program)
+        dirmngr_program = gnupg_module_name (GNUPG_MODULE_NAME_DIRMNGR);
+
+      if (verbose)
+        log_info (_("no running %s - starting `%s'\n"),
+                  "dirmngr", dirmngr_program);
+          
+      if (status_cb)
+        status_cb (status_cb_arg, STATUS_PROGRESS, 
+                   "starting_dirmngr ? 0 0", NULL);
+          
+      if (fflush (NULL))
+        {
+          gpg_error_t tmperr = gpg_err_make (errsource,
+                                             gpg_err_code_from_syserror ());
+          log_error ("error flushing pending output: %s\n",
+                     strerror (errno));
+          assuan_release (ctx);
+          return tmperr;
+        }
+          
+      argv[0] = "--daemon";
+      argv[1] = NULL;  
+      
+      if (!(err = lock_spawning (&lock, homedir, "dirmngr"))
+          && assuan_socket_connect (ctx, sockname, 0, 0))
+        {
+          err = gnupg_spawn_process_detached (dirmngr_program, argv,NULL);
+          if (err)
+            log_error ("failed to start the dirmngr `%s': %s\n",
+                       dirmngr_program, gpg_strerror (err));
+          else
+            {
+              int i;
+              
+              if (verbose)
+                log_info (_("waiting %d seconds for the %s to come up\n"),
+                          5, "dirmngr" );
+              for (i=0; i < 5; i++)
+                {
+                  gnupg_sleep (1);
+                  err = assuan_socket_connect (ctx, sockname, 0, 0);
+                  if (!err)
+                    break;
+                }
+            }
+        }
+      
+      unlock_spawning (&lock, "dirmngr");
+    }
+ 
+  if (err)
+    {
+      log_error ("connecting dirmngr at `%s' failed: %s\n",
+                 sockname, gpg_strerror (err));
+      assuan_release (ctx);
+      return gpg_err_make (errsource, GPG_ERR_NO_DIRMNGR);
+    }
+
+  if (debug)
+    log_debug ("connection to the dirmngr established\n");
+
+  *r_ctx = ctx;
+  return 0;
+}
+
diff --git a/common/asshelp.h b/common/asshelp.h
index 3c961fef8..0eb6553f9 100644
--- a/common/asshelp.h
+++ b/common/asshelp.h
@@ -49,5 +49,17 @@ start_new_gpg_agent (assuan_context_t *r_ctx,
                      gpg_error_t (*status_cb)(ctrl_t, int, ...),
                      ctrl_t status_cb_arg);
 
+/* This function is used to connect to the dirmngr.  On some platforms
+   the function is able starts a dirmngr process if needed.  */
+gpg_error_t
+start_new_dirmngr (assuan_context_t *r_ctx,
+                   gpg_err_source_t errsource,
+                   const char *homedir,
+                   const char *dirmngr_program,
+                   int verbose, int debug,
+                   gpg_error_t (*status_cb)(ctrl_t, int, ...),
+                   ctrl_t status_cb_arg);
+
+
 
 #endif /*GNUPG_COMMON_ASSHELP_H*/
diff --git a/dirmngr/dirmngr.c b/dirmngr/dirmngr.c
index 771a58642..ed6259a29 100644
--- a/dirmngr/dirmngr.c
+++ b/dirmngr/dirmngr.c
@@ -194,7 +194,7 @@ static ARGPARSE_OPTS opts[] = {
   ARGPARSE_s_i (oMaxReplies, "max-replies", 
                 N_("|N|do not return more than N items in one query")),
 
-  ARGPARSE_s_s (oSocketName, "socket-name", N_("|FILE|listen on socket FILE")),
+  ARGPARSE_s_s (oSocketName, "socket-name", "@"),  /* Only for debugging.  */
 
   ARGPARSE_s_u (oFakedSystemTime, "faked-system-time", "@"), /*(epoch time)*/
   ARGPARSE_p_u (oDebug,    "debug", "@"),
@@ -897,6 +897,7 @@ main (int argc, char **argv)
 
   if (cmd == aServer)
     {
+      /* Note that this server mode is maily useful for debugging.  */
       if (argc)
         wrong_args ("--server");
 
@@ -1002,6 +1003,9 @@ main (int argc, char **argv)
 
       es_fflush (NULL);
 
+      /* Note: We keep the dirmngr_info output only for the sake of
+         existing scripts which might use this to detect a successful
+         start of the dirmngr.  */
 #ifdef HAVE_W32_SYSTEM
       pid = getpid ();
       printf ("set DIRMNGR_INFO=%s;%lu;1\n", socket_name, (ulong) pid);
@@ -1032,7 +1036,7 @@ main (int argc, char **argv)
               dirmngr_exit (1);
             }
           /* Print the environment string, so that the caller can use
-             shell's eval to set it */
+             shell's eval to set it.  But see above.  */
           if (csh_style)
             {
               *strchr (infostr, '=') = ' ';
diff --git a/doc/dirmngr.texi b/doc/dirmngr.texi
index 34450474c..e6264878a 100644
--- a/doc/dirmngr.texi
+++ b/doc/dirmngr.texi
@@ -469,7 +469,7 @@ dirmngr --daemon
 @end example
 
 Please ignore the output; it is not needed anymore.  Check the log file
-to see whether all trusted root certificates have benn loaded correctly.
+to see whether all trusted root certificates have been loaded correctly.
 
 
 @c 
@@ -519,15 +519,8 @@ This prints some caching statistics to the log file.
 @section Examples
 
 
-The way to start the dirmngr in the foreground (as done by tools if no
-dirmngr is running in the background) is to use:
-
-@example
-  dirmngr --server -v
-@end example
-
-If a dirmngr is supposed to be used as a system wide daemon, it should
-be started like:
+Dirmngr is supposed to be used as a system wide daemon, it should be
+started like:
 
 @example 
   dirmngr --daemon
@@ -539,6 +532,14 @@ socket for client requests.  It does also print information about the
 socket used but they are only for compatibilty reasons with old GnuPG
 versions and may be ignored.
 
+For debugging purposes it is also possible to start Dirmngr in the
+foreground:
+
+@example
+  dirmngr --server -v
+@end example
+
+
 
 @c
 @c  Assuan Protocol
diff --git a/sm/ChangeLog b/sm/ChangeLog
index 02f3347d2..d4157c2ca 100644
--- a/sm/ChangeLog
+++ b/sm/ChangeLog
@@ -1,3 +1,16 @@
+2010-08-16  Werner Koch  <wk@g10code.com>
+
+	* call-dirmngr.c (start_dirmngr_ext): Use new start_new_dirmngr
+	function.
+
+	* gpgsm.c: Mark option --prefer-system-dirmngr obsolete.
+	(main): Enable dirmngr by default.
+
+	* gpgsm.h (struct opt): Remove field PREFER_SYSTEM_DIRMNGR.
+
+	* server.c (gpgsm_server): Use dirmngr_socket_name instead of the
+	envvar for the hello line info.
+
 2010-06-21  Werner Koch  <wk@g10code.com>
 
 	* minip12.c (p12_build): Change arg CERT to const void ptr.
diff --git a/sm/call-dirmngr.c b/sm/call-dirmngr.c
index ba6cf6fba..6d0236c72 100644
--- a/sm/call-dirmngr.c
+++ b/sm/call-dirmngr.c
@@ -1,5 +1,6 @@
-/* call-dirmngr.c - communication with the dromngr 
- * Copyright (C) 2002, 2003, 2005, 2007, 2008 Free Software Foundation, Inc.
+/* call-dirmngr.c - Communication with the dirmngr 
+ * Copyright (C) 2002, 2003, 2005, 2007, 2008,
+ *               2010  Free Software Foundation, Inc.
  *
  * This file is part of GnuPG.
  *
@@ -33,6 +34,7 @@
 
 #include "i18n.h"
 #include "keydb.h"
+#include "asshelp.h"
 
 
 struct membuf {
@@ -52,8 +54,6 @@ static assuan_context_t dirmngr2_ctx = NULL;
 static int dirmngr_ctx_locked;
 static int dirmngr2_ctx_locked;
 
-static int force_pipe_server = 0;
-
 struct inq_certificate_parm_s {
   ctrl_t ctrl;
   assuan_context_t ctx;
@@ -184,15 +184,12 @@ prepare_dirmngr (ctrl_t ctrl, assuan_context_t ctx, gpg_error_t err)
 
 
 
-/* Try to connect to the agent via socket or fork it off and work by
-   pipes.  Handle the server's initial greeting */
-static int
+/* Return a new assuan context for a Dirmngr connection.  */
+static gpg_error_t
 start_dirmngr_ext (ctrl_t ctrl, assuan_context_t *ctx_r)
 {
-  int rc;
-  char *infostr, *p;
-  assuan_context_t ctx = NULL;
-  int try_default = 0;
+  gpg_error_t err;
+  assuan_context_t ctx;
 
   if (opt.disable_dirmngr)
     return gpg_error (GPG_ERR_NO_DIRMNGR);
@@ -203,129 +200,15 @@ start_dirmngr_ext (ctrl_t ctrl, assuan_context_t *ctx_r)
   /* Note: if you change this to multiple connections, you also need
      to take care of the implicit option sending caching. */
 
-#ifdef HAVE_W32_SYSTEM
-  infostr = NULL;
-  opt.prefer_system_dirmngr = 1;
-#else
-  infostr = force_pipe_server? NULL : getenv ("DIRMNGR_INFO");
-#endif /*HAVE_W32_SYSTEM*/
-  if (infostr && !*infostr)
-    infostr = NULL;
-  else if (infostr)
-    infostr = xstrdup (infostr);
+  err = start_new_dirmngr (&ctx, GPG_ERR_SOURCE_DEFAULT,
+                           opt.homedir, opt.dirmngr_program, 
+                           opt.verbose, DBG_ASSUAN,
+                           gpgsm_status2, ctrl);
+  prepare_dirmngr (ctrl, ctx, err);
+  if (err)
+    return err;
 
-  if (opt.prefer_system_dirmngr && !force_pipe_server && !infostr)
-    {
-      infostr = xstrdup (dirmngr_socket_name ());
-      try_default = 1;
-    }
-
-  rc = assuan_new (&ctx);
-  if (rc)
-    {
-      log_error ("can't allocate assuan context: %s\n", gpg_strerror (rc));
-      return rc;
-    }
-
-  if (!infostr)
-    {
-      const char *pgmname;
-      const char *argv[3];
-      int no_close_list[3];
-      int i;
-
-      if (!opt.dirmngr_program || !*opt.dirmngr_program)
-        opt.dirmngr_program = gnupg_module_name (GNUPG_MODULE_NAME_DIRMNGR);
-      if ( !(pgmname = strrchr (opt.dirmngr_program, '/')))
-        pgmname = opt.dirmngr_program;
-      else
-        pgmname++;
-
-      if (opt.verbose)
-        log_info (_("no running dirmngr - starting `%s'\n"),
-                  opt.dirmngr_program);
-      
-      if (fflush (NULL))
-        {
-          gpg_error_t tmperr = gpg_error (gpg_err_code_from_errno (errno));
-          log_error ("error flushing pending output: %s\n", strerror (errno));
-          return tmperr;
-        }
-
-      argv[0] = pgmname;
-      argv[1] = "--server";
-      argv[2] = NULL;
-
-      i=0;
-      if (log_get_fd () != -1)
-        no_close_list[i++] = assuan_fd_from_posix_fd (log_get_fd ());
-      no_close_list[i++] = assuan_fd_from_posix_fd (fileno (stderr));
-      no_close_list[i] = -1;
-
-      /* connect to the agent and perform initial handshaking */
-      rc = assuan_pipe_connect (ctx, opt.dirmngr_program, argv,
-                                no_close_list, NULL, NULL, 0);
-    }
-  else
-    {
-      int prot;
-      int pid;
-
-      if (!try_default)
-        {
-          if ( !(p = strchr (infostr, PATHSEP_C)) || p == infostr)
-            {
-              log_error (_("malformed DIRMNGR_INFO environment variable\n"));
-              xfree (infostr);
-              force_pipe_server = 1;
-              return start_dirmngr_ext (ctrl, ctx_r);
-            }
-          *p++ = 0;
-          pid = atoi (p);
-          while (*p && *p != PATHSEP_C)
-            p++;
-          prot = *p? atoi (p+1) : 0;
-          if (prot != 1)
-            {
-              log_error (_("dirmngr protocol version %d is not supported\n"),
-                         prot);
-              xfree (infostr);
-              force_pipe_server = 1;
-              return start_dirmngr_ext (ctrl, ctx_r);
-            }
-        }
-      else
-        pid = -1;
-
-      rc = assuan_socket_connect (ctx, infostr, pid, 0);
-#ifdef HAVE_W32_SYSTEM
-      if (rc)
-        log_debug ("connecting dirmngr at `%s' failed\n", infostr);
-#endif
-
-      xfree (infostr);
-#ifndef HAVE_W32_SYSTEM
-      if (gpg_err_code (rc) == GPG_ERR_ASS_CONNECT_FAILED)
-        {
-          log_info (_("can't connect to the dirmngr - trying fall back\n"));
-          force_pipe_server = 1;
-          return start_dirmngr_ext (ctrl, ctx_r);
-        }
-#endif /*!HAVE_W32_SYSTEM*/
-    }
-
-  prepare_dirmngr (ctrl, ctx, rc);
-
-  if (rc)
-    {
-      assuan_release (ctx);
-      log_error ("can't connect to the dirmngr: %s\n", gpg_strerror (rc));
-      return gpg_error (GPG_ERR_NO_DIRMNGR);
-    }
   *ctx_r = ctx;
-
-  if (DBG_ASSUAN)
-    log_debug ("connection to dirmngr established\n");
   return 0;
 }
 
diff --git a/sm/gpgsm.c b/sm/gpgsm.c
index 819e28436..bbce179b7 100644
--- a/sm/gpgsm.c
+++ b/sm/gpgsm.c
@@ -240,8 +240,7 @@ static ARGPARSE_OPTS opts[] = {
 
   ARGPARSE_s_s (oRecipient, "recipient", N_("|USER-ID|encrypt for USER-ID")),
 
-  ARGPARSE_s_n (oPreferSystemDirmngr,"prefer-system-dirmngr",
-                N_("use system's dirmngr if available")),
+  ARGPARSE_s_n (oPreferSystemDirmngr,"prefer-system-dirmngr", "@"),
 
   ARGPARSE_s_n (oDisableCRLChecks, "disable-crl-checks", 
                 N_("never consult a CRL")),
@@ -941,10 +940,6 @@ main ( int argc, char **argv)
 
   opt.homedir = default_homedir ();
 
-#ifdef HAVE_W32CE_SYSTEM
-  opt.disable_dirmngr = 1;
-  opt.no_crl_check = 1;
-#endif
  
   /* First check whether we have a config file on the commandline */
   orig_argc = argc;
@@ -1280,7 +1275,7 @@ main ( int argc, char **argv)
 
         case oDirmngrProgram: opt.dirmngr_program = pargs.r.ret_str;  break;
         case oDisableDirmngr: opt.disable_dirmngr = 1;  break;
-        case oPreferSystemDirmngr: opt.prefer_system_dirmngr = 1; break;
+        case oPreferSystemDirmngr: /* Obsolete */; break;
         case oProtectToolProgram:
           opt.protect_tool_program = pargs.r.ret_str; 
           break;
@@ -1659,9 +1654,6 @@ main ( int argc, char **argv)
         printf ("disable-policy-checks:%lu:\n", GC_OPT_FLAG_NONE);
         printf ("auto-issuer-key-retrieve:%lu:\n", GC_OPT_FLAG_NONE);
         printf ("disable-dirmngr:%lu:\n", GC_OPT_FLAG_NONE);
-#ifndef HAVE_W32_SYSTEM
-        printf ("prefer-system-dirmngr:%lu:\n", GC_OPT_FLAG_NONE);
-#endif
         printf ("cipher-algo:%lu:\"%s:\n", GC_OPT_FLAG_DEFAULT,
                 DEFAULT_CIPHER_ALGO);
         printf ("p12-charset:%lu:\n", GC_OPT_FLAG_DEFAULT);
diff --git a/sm/gpgsm.h b/sm/gpgsm.h
index a4b5540f1..4643fd168 100644
--- a/sm/gpgsm.h
+++ b/sm/gpgsm.h
@@ -69,7 +69,6 @@ struct
   char *lc_messages;
 
   const char *dirmngr_program;
-  int prefer_system_dirmngr;  /* Prefer using a system wide drimngr.  */
   int disable_dirmngr;        /* Do not do any dirmngr calls.  */
   const char *protect_tool_program;
   char *outfile;    /* name of output file */
diff --git a/sm/server.c b/sm/server.c
index 22ddb5f18..d05580796 100644
--- a/sm/server.c
+++ b/sm/server.c
@@ -1293,7 +1293,6 @@ gpgsm_server (certlist_t default_recplist)
     {
       char *tmp = NULL;
       const char *s1 = getenv ("GPG_AGENT_INFO");
-      const char *s2 = getenv ("DIRMNGR_INFO");
 
       if (asprintf (&tmp,
                     "Home: %s\n"
@@ -1304,7 +1303,7 @@ gpgsm_server (certlist_t default_recplist)
                     opt.homedir,
                     opt.config_filename,
                     s1?s1:"[not set]",
-                    s2?s2:"[not set]",
+                    dirmngr_socket_name (),
                     hello) > 0)
         {
           assuan_set_hello_line (ctx, tmp);