diff --git a/libs/freetdm/Makefile.am b/libs/freetdm/Makefile.am
index b3353f32de..63e04b6d0b 100644
--- a/libs/freetdm/Makefile.am
+++ b/libs/freetdm/Makefile.am
@@ -62,7 +62,7 @@ LINK      = $(LIBTOOL) --mode=link --tag=CC $(CC) $(FTDM_CFLAGS) $(LDFLAGS) -o $
 #
 EXTRA_DIST = freetdm.pc.in
 
-pkgconfigdir   = $(libdir)/pkgconfig
+pkgconfigdir   = @pkgconfigdir@
 pkgconfig_DATA = freetdm.pc
 
 
diff --git a/libs/freetdm/configure.ac b/libs/freetdm/configure.ac
index 1f4fc9c6ac..29661c1cdf 100644
--- a/libs/freetdm/configure.ac
+++ b/libs/freetdm/configure.ac
@@ -65,6 +65,18 @@ AC_ARG_WITH([modinstdir],
 )
 AC_SUBST([modinstdir])
 
+# freetdm.pc pkgconfig file
+AC_ARG_WITH([pkgconfigdir],
+	[AS_HELP_STRING([--with-pkgconfigdir=DIR], [Installation directory for pkgconfig file (default: ${libdir}/pkgconfig)])],
+	[case "${withval}" in
+	 yes|no) AC_MSG_ERROR([Invalid value ${withval} for option --with-pkgconfigdir]) ;;
+	 *) pkgconfigdir="${withval}" ;;
+	 esac
+	],
+	[pkgconfigdir="${libdir}/pkgconfig"]
+)
+AC_SUBST([pkgconfigdir])
+
 AC_ARG_ENABLE([enable_64],
 	[AS_HELP_STRING([--enable-64], [Enable 64bit compilation])],
 	[enable_64="${enableval}"],