diff --git a/Gemfile.lock b/Gemfile.lock
index 1ef095c..aba6427 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -1,7 +1,7 @@
 PATH
   remote: .
   specs:
-    serverless-tools (0.4.0)
+    serverless-tools (0.4.1)
       aws-sdk-ecr
       aws-sdk-lambda
       aws-sdk-s3
diff --git a/lib/serverless-tools/deployer/python_builder.rb b/lib/serverless-tools/deployer/python_builder.rb
index 7bb5157..25c927f 100644
--- a/lib/serverless-tools/deployer/python_builder.rb
+++ b/lib/serverless-tools/deployer/python_builder.rb
@@ -11,12 +11,13 @@ def build
         # Poetry does not have an option to install dependencies to a specified target folder.
         # Workaround is generating a requirments.txt file using poetry
         `poetry export -f requirements.txt --without-hashes > requirements.txt`
-        # And then installing them using pip to specified "package" target directory
-        `pip install -r requirements.txt -t ./package`
-        # Zipping contents of functions and package folders with the
+        # And then installing them using pip to specified "lambda-package" target directory
+        `pip install -r requirements.txt -t lambda-package`
+        # Zipping contents of functions and lambda-package folders with the
         # handler file in a zip as required by AWS
-        `zip -r "#{local_filename}" #{config.handler_file} src`
-        `cd package && zip -r "../#{local_filename}" ./*`
+        `zip -jr "#{local_filename}" #{config.handler_file}`
+        `zip -r "#{local_filename}" src`
+        `cd lambda-package && zip -r "../#{local_filename}" ./*`
       end
 
       def output
diff --git a/lib/serverless-tools/version.rb b/lib/serverless-tools/version.rb
index b2f72d8..d23ffb0 100644
--- a/lib/serverless-tools/version.rb
+++ b/lib/serverless-tools/version.rb
@@ -1,3 +1,3 @@
 module ServerlessTools
-  VERSION = "0.4.0"
+  VERSION = "0.4.1"
 end
diff --git a/pyproject.toml b/pyproject.toml
index 4e2da65..1552e48 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -2,7 +2,7 @@
 # a python project file structure
 [tool.poetry]
 name = "serverless-tools"
-version = "0.4.0"
+version = "0.4.1"
 description = "FreeAgent Serverless Tools"
 authors = ["yasser.bennani@freeagent.com"]
 
diff --git a/test/deployer/python_builder_test.rb b/test/deployer/python_builder_test.rb
index 15d999d..d3a21e3 100644
--- a/test/deployer/python_builder_test.rb
+++ b/test/deployer/python_builder_test.rb
@@ -22,9 +22,9 @@ def assert_file_exists?(exists = true)
 
         File.delete(subject.local_filename)
 
-        # Delete package directory created by Python deployer build method
+        # Delete lambda-package directory created by Python deployer build method
         File.delete("requirements.txt")
-        FileUtils.remove_dir("./package",true)
+        FileUtils.remove_dir("./lambda-package",true)
       end
 
       describe "#local_filename" do