diff --git a/packages/sysutils/squashfs/package.mk b/packages/sysutils/squashfs/package.mk
index 2f1caf7275..f15372d443 100644
--- a/packages/sysutils/squashfs/package.mk
+++ b/packages/sysutils/squashfs/package.mk
@@ -1,29 +1,29 @@
 ################################################################################
-#      This file is part of OpenELEC - http://www.openelec.tv
-#      Copyright (C) 2009-2016 Stephan Raue (stephan@openelec.tv)
+#      This file is part of LibreELEC - https://libreelec.tv
+#      Copyright (C) 2017-present Team LibreELEC
 #
-#  OpenELEC is free software: you can redistribute it and/or modify
+#  LibreELEC is free software: you can redistribute it and/or modify
 #  it under the terms of the GNU General Public License as published by
 #  the Free Software Foundation, either version 2 of the License, or
 #  (at your option) any later version.
 #
-#  OpenELEC is distributed in the hope that it will be useful,
+#  LibreELEC is distributed in the hope that it will be useful,
 #  but WITHOUT ANY WARRANTY; without even the implied warranty of
 #  MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
 #  GNU General Public License for more details.
 #
 #  You should have received a copy of the GNU General Public License
-#  along with OpenELEC.  If not, see <http://www.gnu.org/licenses/>.
+#  along with LibreELEC.  If not, see <http://www.gnu.org/licenses/>.
 ################################################################################
 
 PKG_NAME="squashfs"
-PKG_VERSION="4.3"
-PKG_SHA256="0d605512437b1eb800b4736791559295ee5f60177e102e4d4ccd0ee241a5f3f6"
+PKG_VERSION="1a6ffc7"
+PKG_SHA256="2a641ae2f3ae772b9b34dce955a77cfa0717eda57efb3df3a4a5222607c24b2c"
 PKG_ARCH="any"
 PKG_LICENSE="GPL"
-PKG_SITE="http://squashfs.sourceforge.net/"
-PKG_URL="$SOURCEFORGE_SRC/squashfs/squashfs/${PKG_NAME}${PKG_VERSION}/${PKG_NAME}${PKG_VERSION}.tar.gz"
-PKG_SOURCE_DIR="${PKG_NAME}${PKG_VERSION}"
+PKG_SITE="https://git.kernel.org/pub/scm/fs/squashfs/squashfs-tools.git"
+PKG_URL="https://git.kernel.org/pub/scm/fs/squashfs/squashfs-tools.git/snapshot/$PKG_VERSION.tar.gz"
+PKG_SOURCE_DIR="$PKG_VERSION"
 PKG_DEPENDS_HOST="ccache:host zlib:host lzo:host xz:host"
 PKG_SECTION="sysutils"
 PKG_SHORTDESC="squashfs-tools: A compressed read-only filesystem for Linux"
diff --git a/scripts/image b/scripts/image
index 2d079a1611..e6a3109455 100755
--- a/scripts/image
+++ b/scripts/image
@@ -234,13 +234,9 @@ rm -rf $TARGET_IMG/$IMAGE_NAME.kernel
 cp -PR $BUILD/linux-$(kernel_version)/arch/$TARGET_KERNEL_ARCH/boot/$KERNEL_TARGET $TARGET_IMG/$IMAGE_NAME.kernel
 chmod 0644 $TARGET_IMG/$IMAGE_NAME.kernel
 
-# create squashfs file
-if [ -z "$SQUASHFS_COMPRESSION" ]; then
-  SQUASHFS_COMPRESSION="gzip"
-fi
-
+# create squashfs file, default to gzip if no compression configured
 echo "rm -rf \"$TARGET_IMG/$IMAGE_NAME.system\"" >> $FAKEROOT_SCRIPT
-echo "$TOOLCHAIN/bin/mksquashfs \"$BUILD/image/system\" \"$TARGET_IMG/$IMAGE_NAME.system\" -noappend -comp $SQUASHFS_COMPRESSION" >> $FAKEROOT_SCRIPT
+echo "$TOOLCHAIN/bin/mksquashfs \"$BUILD/image/system\" \"$TARGET_IMG/$IMAGE_NAME.system\" -noappend -comp ${SQUASHFS_COMPRESSION:-gzip}" >> $FAKEROOT_SCRIPT
 
 # run fakeroot
 $TOOLCHAIN/bin/fakeroot -- $FAKEROOT_SCRIPT