diff --git a/configure.in b/configure.in
index 3c227d063b..7abfc3f600 100644
--- a/configure.in
+++ b/configure.in
@@ -231,10 +231,6 @@ fi
 AM_CONDITIONAL(WITH_GCRYPT, test x"$ac_gcrypt" != xno)
 
 if test x"$with_gnome" != xno; then
-	PKG_CHECK_MODULES(PANEL_APPLET, libpanelapplet-2.0)
-	AC_SUBST(PANEL_APPLET_CFLAGS)
-	AC_SUBST(PANEL_APPLET_LIBS)
-
 	PKG_CHECK_MODULES(LIBGNOMEUI, libgnomeui-2.0)
 	AC_SUBST(LIBGNOMEUI_CFLAGS) # is this even needed? it was typed incorrectly before
 	AC_SUBST(LIBGNOMEUI_LIBS)
diff --git a/gnome/applet/Makefile.am b/gnome/applet/Makefile.am
index 7bea050d33..29cf91df42 100644
--- a/gnome/applet/Makefile.am
+++ b/gnome/applet/Makefile.am
@@ -15,7 +15,6 @@ nm_applet_CPPFLAGS =									\
 	$(GTK_CFLAGS)										\
 	$(GCONF_CFLAGS)									\
 	$(LIBGNOMEUI_CFLAGS)								\
-	$(PANEL_APPLET_CFLAGS)								\
 	$(GNOME_KEYRING_CFLAGS)								\
 	-DICONDIR=\""$(datadir)/icons"\"						\
 	-DGLADEDIR=\""$(gladedir)"\"							\
@@ -106,7 +105,6 @@ nm_applet_LDADD =						\
 	$(GTHREAD_LIBS)					\
 	$(GLADE_LIBS)						\
 	$(DBUS_GLIB_LIBS)					\
-	$(PANEL_APPLET_LIBS)				\
 	$(GTK_LIBS)						\
 	$(GCONF_LIBS)						\
 	$(LIBGNOMEUI_LIBS)					\