diff --git a/.gitignore b/.gitignore
index a0c4088..ad9b423 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,7 +1,7 @@
 __pycache__
 pid
 .*.sw?
-version
+.version
 _version.py
 tags
 set_pythonpath
diff --git a/Makefile b/Makefile
index 38ff6c8..558f739 100644
--- a/Makefile
+++ b/Makefile
@@ -6,7 +6,7 @@
 	./contrib/check_dependencies.py
 
 version:
-	./update_version.sh
+	./contrib/update_version.sh
 
 manual:
 	$(MAKE) -C doc/manuals
diff --git a/contrib/update_version.sh b/contrib/update_version.sh
new file mode 100755
index 0000000..ab2674a
--- /dev/null
+++ b/contrib/update_version.sh
@@ -0,0 +1,11 @@
+#!/bin/sh
+set -e
+ROOTDIR=$(git rev-parse --show-toplevel)
+git describe --abbrev=8 --dirty | sed 's/v\([^-]*\)-\([^-]*\)-\(.*\)/\1.dev\2.\3/' > $ROOTDIR/.version
+cat $ROOTDIR/.version
+echo "# osmo-gsm-tester version.
+# Automatically generated by update_version.sh.
+# Gets imported by __init__.py.
+
+_version = '$(cat $ROOTDIR/.version)'" \
+  > $ROOTDIR/src/osmo_gsm_tester/_version.py
diff --git a/update_version.sh b/update_version.sh
deleted file mode 100755
index 3d5fe42..0000000
--- a/update_version.sh
+++ /dev/null
@@ -1,10 +0,0 @@
-#!/bin/sh
-set -e
-git describe --abbrev=8 --dirty | sed 's/v\([^-]*\)-\([^-]*\)-\(.*\)/\1.dev\2.\3/' > version
-cat version
-echo "# osmo-gsm-tester version.
-# Automatically generated by update_version.sh.
-# Gets imported by __init__.py.
-
-_version = '$(cat version)'" \
-  > src/osmo_gsm_tester/_version.py