diff --git a/.gitignore b/.gitignore
index e4d932e..5bfac94 100644
--- a/.gitignore
+++ b/.gitignore
@@ -20,7 +20,7 @@ Makefile
 
 # build
 *.o
-/ttynvt
+/src/ttynvt
 
 /ttynvt-*.tar.gz
 /ttynvt-*.tar.xz
diff --git a/Makefile.am b/Makefile.am
index 2929308..cebb369 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -1,20 +1,7 @@
-# Build ttynvt
-#
 
 MAINTAINERCLEANFILES = \
 	aclocal.m4 autom4te.cache compile config.h.in config.h.in~ configure \
 	depcomp install-sh missing \
-	Makefile.in
+	Makefile.in */Makefile.in
 
-CFLAGS_OPT  = -O3
-CFLAGS_WARN = -Wall -Wextra -Werror -Wno-unused-parameter
-
-bin_PROGRAMS = ttynvt
-
-ttynvt_SOURCES = \
-	ttynvt.c \
-	telnet_basic.c telnet_rfc2217.c telnet.h telnet_param.h
-
-ttynvt_CPPFLAGS = -I$(top_builddir) $(FUSE_CFLAGS) $(CFLAGS_OPT) $(CFLAGS_WARN)
-
-ttynvt_LDADD = $(FUSE_LIBS)
+SUBDIRS = src
diff --git a/configure.ac b/configure.ac
index c147596..5818b04 100644
--- a/configure.ac
+++ b/configure.ac
@@ -32,6 +32,7 @@ PKG_CHECK_MODULES(FUSE, fuse)
 AC_CONFIG_HEADERS([config.h])
 AC_CONFIG_FILES([
 Makefile
+src/Makefile
 ])
 AC_OUTPUT
 
diff --git a/src/Makefile.am b/src/Makefile.am
new file mode 100644
index 0000000..76f0e17
--- /dev/null
+++ b/src/Makefile.am
@@ -0,0 +1,13 @@
+
+CFLAGS_OPT  = -O3
+CFLAGS_WARN = -Wall -Wextra -Werror -Wno-unused-parameter
+
+bin_PROGRAMS = ttynvt
+
+ttynvt_SOURCES = \
+	ttynvt.c \
+	telnet_basic.c telnet_rfc2217.c telnet.h telnet_param.h
+
+ttynvt_CPPFLAGS = -I$(top_builddir) $(FUSE_CFLAGS) $(CFLAGS_OPT) $(CFLAGS_WARN)
+
+ttynvt_LDADD = $(FUSE_LIBS)
diff --git a/telnet.h b/src/telnet.h
similarity index 100%
rename from telnet.h
rename to src/telnet.h
diff --git a/telnet_basic.c b/src/telnet_basic.c
similarity index 100%
rename from telnet_basic.c
rename to src/telnet_basic.c
diff --git a/telnet_param.h b/src/telnet_param.h
similarity index 100%
rename from telnet_param.h
rename to src/telnet_param.h
diff --git a/telnet_rfc2217.c b/src/telnet_rfc2217.c
similarity index 100%
rename from telnet_rfc2217.c
rename to src/telnet_rfc2217.c
diff --git a/ttynvt.c b/src/ttynvt.c
similarity index 100%
rename from ttynvt.c
rename to src/ttynvt.c