diff --git a/daemon/Makefile.am b/daemon/Makefile.am
index a0b9ec09672b8137033f44ddc06526ae1bb72e85..6584a5c0f2a4d89a61610333c5d67d4a204f9a43 100644
--- a/daemon/Makefile.am
+++ b/daemon/Makefile.am
@@ -19,7 +19,7 @@ unittest:
 endif
 
 ACLOCAL_AMFLAGS = -I m4
-SUBDIRS = libs src ringtones man $(TESTS_DIR) doc
+SUBDIRS = src ringtones man $(TESTS_DIR) doc
 
 EXTRA_DIST = m4/libtool.m4 \
 			 m4/lt~obsolete.m4 \
diff --git a/daemon/configure.ac b/daemon/configure.ac
index f9421e4911a1a5ff528164cc255899a1b3034849..b8c234242e802bd8c68bf349f52eafc09b39eb84 100644
--- a/daemon/configure.ac
+++ b/daemon/configure.ac
@@ -476,8 +476,6 @@ AS_IF([test "x$enable_debug" = "xyes"],
 dnl What Makefiles to generate
 
 AC_CONFIG_FILES([Makefile \
-                 libs/Makefile \
-                 libs/iax2/Makefile \
                  src/Makefile \
                  src/sip/Makefile \
                  src/im/Makefile \
diff --git a/daemon/globals.mak b/daemon/globals.mak
index 5991a6736876e6ab5eb75dbaf711f449a7a9711f..f9eaaf7c57b174d5b267d0004075e8e0a77b8370 100644
--- a/daemon/globals.mak
+++ b/daemon/globals.mak
@@ -22,8 +22,6 @@ endif
 
 # Preprocessor flags
 AM_CPPFLAGS = \
-	-I$(src)/libs \
-	-I$(src)/libs/iax2 \
 	-I$(src)/src \
 	-I$(src)/src/config \
 	-I$(src)/test \
diff --git a/daemon/src/Makefile.am b/daemon/src/Makefile.am
index 058287f2ad58ccd2bdb0a431b039fe4dd13d1985..0522bbb09cda5873b60af80bee5edfb6bc86aaa9 100644
--- a/daemon/src/Makefile.am
+++ b/daemon/src/Makefile.am
@@ -18,7 +18,7 @@ endif
 if USE_IAX
 IAX_SUBDIR=iax
 IAX_CXXFLAG=-DUSE_IAX
-IAX_LIB=./iax/libiaxlink.la $(top_builddir)/libs/iax2/libiax2.la
+IAX_LIB=./iax/libiaxlink.la -liax
 endif
 
 if USE_NETWORKMANAGER
@@ -40,11 +40,10 @@ sflphoned_CXXFLAGS = \
 
 # libsflphone
 
-sflphoned_LDADD = ./libsflphone.la $(YAML_LIBS)
+sflphoned_LDADD = ./libsflphone.la $(YAML_LIBS) $(IAX_LIB)
 noinst_LTLIBRARIES = libsflphone.la
 
 libsflphone_la_LIBADD = \
-	$(IAX_LIB) \
 	./sip/libsiplink.la \
 	./audio/libaudio.la \
 	./client/libclient.la \
diff --git a/daemon/src/iax/iaxcall.cpp b/daemon/src/iax/iaxcall.cpp
index 0502d98f48e2c99e2260be3cdc9b2c8df3798361..6bf6a8534c2dc6f32581fca4f1fe9d1d86b4c515 100644
--- a/daemon/src/iax/iaxcall.cpp
+++ b/daemon/src/iax/iaxcall.cpp
@@ -32,8 +32,8 @@
 
 #include <cstring>
 #include <sys/socket.h>
-#include <iax-client.h>
-#include <frame.h>
+#include <iax/iax-client.h>
+#include <iax/frame.h>
 
 #include "iaxcall.h"
 #include "logger.h"
diff --git a/daemon/src/iax/iaxvoiplink.h b/daemon/src/iax/iaxvoiplink.h
index 90ae42758bd70f674793f373d098ea99babc982f..5f946ae2bea74e0485b50c17e2b561d78d311a9b 100644
--- a/daemon/src/iax/iaxvoiplink.h
+++ b/daemon/src/iax/iaxvoiplink.h
@@ -42,7 +42,7 @@
 #include "sfl_types.h"
 #include "audio/resampler.h"
 
-#include <iax-client.h>
+#include <iax/iax-client.h>
 
 #include <mutex>
 #include <memory>
diff --git a/daemon/src/im/instant_messaging.h b/daemon/src/im/instant_messaging.h
index 073e494e1b4a34e9de5ca1643a8f18d148f2be6e..35000b85b8749a91b270619c642c80582cca308b 100644
--- a/daemon/src/im/instant_messaging.h
+++ b/daemon/src/im/instant_messaging.h
@@ -48,7 +48,7 @@
 #include "config.h"
 
 #if HAVE_IAX
-#include <iax-client.h>
+#include <iax/iax-client.h>
 #endif
 
 #define EMPTY_MESSAGE   pj_str((char*)"")