diff --git a/utils/xz/Makefile b/utils/xz/Makefile
index 7b8088354..0b94e5bdd 100644
--- a/utils/xz/Makefile
+++ b/utils/xz/Makefile
@@ -10,7 +10,7 @@ include $(TOPDIR)/rules.mk
 
 PKG_NAME:=xz
 PKG_VERSION:=5.2.4
-PKG_RELEASE:=2
+PKG_RELEASE:=3
 
 PKG_SOURCE:=$(PKG_NAME)-$(PKG_VERSION).tar.bz2
 PKG_SOURCE_URL:=@SF/lzmautils
diff --git a/utils/xz/patches/001-relative-pkg-config-paths.patch b/utils/xz/patches/001-relative-pkg-config-paths.patch
new file mode 100644
index 000000000..b89c13f75
--- /dev/null
+++ b/utils/xz/patches/001-relative-pkg-config-paths.patch
@@ -0,0 +1,13 @@
+--- a/src/liblzma/liblzma.pc.in
++++ b/src/liblzma/liblzma.pc.in
+@@ -7,8 +7,8 @@
+ 
+ prefix=@prefix@
+ exec_prefix=@exec_prefix@
+-libdir=@libdir@
+-includedir=@includedir@
++libdir=${exec_prefix}/lib
++includedir=${prefix}/include
+ 
+ Name: liblzma
+ Description: General purpose data compression library