diff --git a/.gitignore b/.gitignore
index 2398ed7..dd71f95 100644
--- a/.gitignore
+++ b/.gitignore
@@ -26,7 +26,7 @@ missing
 stamp-h1
 autom4te.cache
 
-bluez.pc
+lib/bluez.pc
 lib/bluetooth
 src/builtin.h
 src/bluetoothd
diff --git a/Makefile.am b/Makefile.am
index fbabf02..be5cf22 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -252,7 +252,7 @@ TESTS = $(unit_tests)
 pkgconfigdir = $(libdir)/pkgconfig
 
 if LIBRARY
-pkgconfig_DATA = bluez.pc
+pkgconfig_DATA = lib/bluez.pc
 endif
 
 DISTCHECK_CONFIGURE_FLAGS = --disable-datafiles --disable-systemd \
diff --git a/configure.ac b/configure.ac
index 47a2a29..522e349 100644
--- a/configure.ac
+++ b/configure.ac
@@ -254,4 +254,4 @@ fi
 AC_DEFINE_UNQUOTED(CONFIGDIR, "${configdir}",
 			[Directory for the configuration files])
 
-AC_OUTPUT(Makefile src/bluetoothd.8 bluez.pc)
+AC_OUTPUT(Makefile src/bluetoothd.8 lib/bluez.pc)
diff --git a/bluez.pc.in b/lib/bluez.pc.in
similarity index 100%
rename from bluez.pc.in
rename to lib/bluez.pc.in