diff --git a/.gitignore b/.gitignore
index a66c59cde..67a20db8d 100644
--- a/.gitignore
+++ b/.gitignore
@@ -34,3 +34,4 @@ tmpout
 debug
 Doxyfile
 mc.kdevelop
+version.h
diff --git a/Makefile.am b/Makefile.am
index faae10219..73c15d572 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -1,5 +1,4 @@
 ## Process this file with automake to create Makefile.in.
-
 AUTOMAKE_OPTIONS = 1.5
 
 SUBDIRS = intl po vfs edit src doc syntax contrib misc
@@ -8,5 +7,19 @@ EXTRA_DIST =
 
 dist_noinst_SCRIPTS = build-glib2.sh
 
+dist_noinst_HEADERS = $(top_srcdir)/version.h
+
 ACLOCAL_AMFLAGS = -I m4
 
+CONFIG_STATUS_DEPENDENCIES = $(top_srcdir)/version.h
+
+.PHONY: update-version
+
+update-version:
+	@if test -x $(top_srcdir)/maint/version.sh; then \
+	    $(top_srcdir)/maint/version.sh "$(top_srcdir)" 2>&1 >/dev/null; \
+	else \
+	    echo "File not found: $(top_srcdir)/maint/version.sh"; \
+	fi
+
+$(top_srcdir)/version.h: update-version
diff --git a/acinclude.m4 b/acinclude.m4
index 99807716e..146e17237 100644
--- a/acinclude.m4
+++ b/acinclude.m4
@@ -6,3 +6,4 @@ m4_include([m4.include/mc-use-termcap.m4])
 m4_include([m4.include/mc-with-screen.m4])
 m4_include([m4.include/ac-g-module-supported.m4])
 m4_include([m4.include/mc-vfs.m4])
+m4_include([m4.include/mc-version.m4])
diff --git a/configure.ac b/configure.ac
index 5431470d6..8ff82701e 100644
--- a/configure.ac
+++ b/configure.ac
@@ -7,7 +7,8 @@ AC_PREREQ(2.60)
 m4_pattern_forbid(MC_)
 AC_CONFIG_SRCDIR(src/main.c)
 AC_CONFIG_AUX_DIR(config)
-AM_INIT_AUTOMAKE(mc, 4.6.2)
+MC_VERSION
+AM_INIT_AUTOMAKE(mc, ${VERSION} )
 
 AM_CONFIG_HEADER(config.h)
 AM_MAINTAINER_MODE
@@ -531,7 +532,7 @@ dnl Libraries used only when building the mc binary
 AC_SUBST(MCLIBS)
 
 dnl Version for the RedHat package, without dashes
-RPM_VERSION=`echo $VERSION | sed 's/-//g'`
+RPM_VERSION=`echo $VERSION | sed 's/-/./g'`
 AC_SUBST(RPM_VERSION)
 
 if test -n "$use_smbfs"; then
diff --git a/m4.include/mc-version.m4 b/m4.include/mc-version.m4
new file mode 100644
index 000000000..73815b1a5
--- /dev/null
+++ b/m4.include/mc-version.m4
@@ -0,0 +1,20 @@
+dnl @synopsis MC_VERSION
+dnl
+dnl get current version of Midnight Commander from git tags
+dnl
+dnl @author Slava Zanko <slavazanko@gmail.com>
+dnl @version 2009-06-02
+dnl @license GPL
+dnl @copyright Free Software Foundation, Inc.
+
+AC_DEFUN([MC_VERSION],[
+    if test ! -f ${srcdir}/version.h; then
+        ${srcdir}/maint/version.sh ${srcdir}
+    fi
+    if test -f ${srcdir}/version.h; then
+        VERSION=$(cat ${srcdir}/version.h| grep '^#define MC_CURRENT_VERSION'| sed -r 's/.*"(.*)"$/\1/')
+    else
+        VERSION="unknown"
+    fi
+    AC_SUBST(VERSION)
+])
diff --git a/maint/version.sh b/maint/version.sh
new file mode 100755
index 000000000..4df9489b4
--- /dev/null
+++ b/maint/version.sh
@@ -0,0 +1,46 @@
+#!/bin/sh
+
+git --version &>/dev/null || exit
+
+curr_dir=$(pwd)
+
+src_top_dir=
+[ -d ${curr_dir}/.git ] && {
+    src_top_dir=${curr_dir}
+} || {
+    curr_dir=$(dirname ${curr_dir})
+    [ -d ${curr_dir}/.git ] && {
+        src_top_dir=${curr_dir}
+    } || {
+        [ -z "$1" ] && exit
+        src_top_dir=$1
+    }
+}
+[ -z "${src_top_dir}" ] && exit
+
+
+VERSION_FILE=${src_top_dir}/version.h
+
+pushd ${src_top_dir} &>/dev/null
+git_head=$(git rev-parse --verify HEAD 2>/dev/null)
+[ -z "${git_head}" ] && exit
+
+new_version="$(git describe 2>/dev/null)"
+[ -z "${new_version}" ] && exit
+popd &>/dev/null
+
+
+saved_version=
+[ -r  ${VERSION_FILE} ] && {
+    saved_version=$(grep '^#define MC_CURRENT_VERSION' ${VERSION_FILE}| sed -r 's/.*"(.*)"$/\1/')
+}
+
+[ -z "${saved_version}" -o "${saved_version}" != "${new_version}" ] && {
+    cat >${VERSION_FILE} <<EOF
+#ifndef MC_CURRENT_VERSION
+/* This is autogenerated file. Don't edit! */
+#define MC_CURRENT_VERSION "${new_version}"
+#endif
+EOF
+}
+exit 0
diff --git a/src/mcconfig/Makefile.am b/src/mcconfig/Makefile.am
index 2d82b2246..665ae0ed4 100644
--- a/src/mcconfig/Makefile.am
+++ b/src/mcconfig/Makefile.am
@@ -2,7 +2,7 @@
 noinst_LTLIBRARIES = libmcconfig.la
 
 libmcconfig_la_SOURCES = \
-	../mcconfig.h \
+	mcconfig.h \
 	common.c \
 	get.c \
 	set.c