diff --git a/libs/libgpiod/Makefile b/libs/libgpiod/Makefile
index ef15288b1a..862b6ced04 100644
--- a/libs/libgpiod/Makefile
+++ b/libs/libgpiod/Makefile
@@ -8,12 +8,12 @@
 include $(TOPDIR)/rules.mk
 
 PKG_NAME:=libgpiod
-PKG_VERSION:=1.6.4
+PKG_VERSION:=2.0
 PKG_RELEASE:=1
 
 PKG_SOURCE:=$(PKG_NAME)-$(PKG_VERSION).tar.xz
 PKG_SOURCE_URL:=@KERNEL/software/libs/libgpiod/
-PKG_HASH:=7b146e12f28fbca3df7557f176eb778c5ccf952ca464698dba8a61b2e1e3f9b5
+PKG_HASH:=f74cbf82038b3cb98ebeb25bce55ee2553be28194002d2a9889b9268cce2dd07
 
 PKG_MAINTAINER:=Michael Heimpold <mhei@heimpold.de>
 PKG_LICENSE:=LGPL-2.1-or-later
@@ -30,13 +30,9 @@ ifneq ($(CONFIG_PACKAGE_gpiod-tools),)
 CONFIGURE_ARGS += --enable-tools
 endif
 
-ifneq ($(CONFIG_PACKAGE_python3-gpiod),)
-CONFIGURE_ARGS += --enable-bindings-python
-CONFIGURE_VARS += \
-	PYTHON="$(STAGING_DIR_HOSTPKG)/bin/$(PYTHON3)" \
-	PYTHON_CPPFLAGS="$(shell $(STAGING_DIR)/host/bin/$(PYTHON3)-config --includes)" \
-	PYTHON_LIBS="$(shell $(STAGING_DIR)/host/bin/$(PYTHON3)-config --libs)"
-endif
+PYTHON3_PKG_SETUP_DIR:=bindings/python
+TARGET_CPPFLAGS+=-I$(PKG_BUILD_DIR)/include
+TARGET_LDFLAGS+=-L$(PKG_BUILD_DIR)/lib/.libs
 
 define Package/libgpiod
   SECTION:=libs
@@ -44,8 +40,7 @@ define Package/libgpiod
   URL:=https://git.kernel.org/pub/scm/libs/libgpiod/libgpiod.git
   TITLE:=Library for interacting with Linux's GPIO character device
   KCONFIG:= \
-    CONFIG_GPIO_CDEV=y \
-    CONFIG_GPIO_CDEV_V1=y
+    CONFIG_GPIO_CDEV=y
   DEPENDS:=@GPIO_SUPPORT
 endef
 
@@ -79,6 +74,20 @@ define Package/python3-gpiod/description
   This package contains the Python bindings for libgpiod.
 endef
 
+define Build/Configure
+	$(call Build/Configure/Default)
+    ifneq ($(CONFIG_PACKAGE_python3-gpiod),)
+	$(call Py3Build/Configure)
+    endif
+endef
+
+define Build/Compile
+	$(call Build/Compile/Default)
+    ifneq ($(CONFIG_PACKAGE_python3-gpiod),)
+	$(call Py3Build/Compile)
+    endif
+endef
+
 define Build/InstallDev
 	$(INSTALL_DIR) $(1)/usr/include
 	$(CP) $(PKG_INSTALL_DIR)/usr/include/gpiod.h $(1)/usr/include/
@@ -88,6 +97,11 @@ define Build/InstallDev
 
 	$(INSTALL_DIR) $(1)/usr/lib/pkgconfig
 	$(CP) $(PKG_INSTALL_DIR)/usr/lib/pkgconfig/libgpiod.pc $(1)/usr/lib/pkgconfig/
+
+    ifneq ($(CONFIG_PACKAGE_python3-gpiod),)
+	$(INSTALL_DIR) $(1)$(PYTHON3_PKG_DIR)
+	$(CP) $(PKG_INSTALL_DIR)$(PYTHON3_PKG_DIR)/* $(1)$(PYTHON3_PKG_DIR)
+    endif
 endef
 
 define Package/libgpiod/install
@@ -100,11 +114,12 @@ define Package/gpiod-tools/install
 	$(CP) $(PKG_INSTALL_DIR)/usr/bin/* $(1)/usr/bin/
 endef
 
-define Package/python3-gpiod/install
-	$(INSTALL_DIR) $(1)/$(PYTHON3_PKG_DIR)
-	$(CP) $(PKG_INSTALL_DIR)/$(PYTHON3_PKG_DIR)/gpiod.so $(1)/$(PYTHON3_PKG_DIR)
+define Py3Package/python3-gpiod/install
+	# this empty define prevent installing tools from /usr/bin
 endef
 
 $(eval $(call BuildPackage,libgpiod))
 $(eval $(call BuildPackage,gpiod-tools))
+$(eval $(call Py3Package,python3-gpiod))
 $(eval $(call BuildPackage,python3-gpiod))
+$(eval $(call BuildPackage,python3-gpiod-src))