diff --git a/src/Makefile.am b/src/Makefile.am
index 94c6931a9..bea3b5f8e 100644
--- a/src/Makefile.am
+++ b/src/Makefile.am
@@ -80,7 +80,7 @@ westoninclude_HEADERS =				\
 	matrix.h				\
 	../shared/config-parser.h
 
-moduledir = @libdir@/weston
+moduledir = $(libdir)/weston
 module_LTLIBRARIES =				\
 	$(desktop_shell)			\
 	$(tablet_shell)				\