diff --git a/package/pkg-generic.mk b/package/pkg-generic.mk
index 80b38a5808..3b6bc76512 100644
--- a/package/pkg-generic.mk
+++ b/package/pkg-generic.mk
@@ -314,7 +314,7 @@ $(2)_DEPENDENCIES ?= $(filter-out $(1),$(patsubst host-host-%,host-%,$(addprefix
 $(2)_INSTALL_STAGING		?= NO
 $(2)_INSTALL_IMAGES		?= NO
 $(2)_INSTALL_TARGET		?= YES
-$(2)_DIR_PREFIX			= $(if $(4),$(4),$(TOP_SRCDIR)/package)
+$(2)_DIR_PREFIX			= $(4)
 
 # define sub-target stamps
 $(2)_TARGET_INSTALL_TARGET =	$$($(2)_DIR)/.stamp_target_installed