diff --git a/src/Makefile b/src/Makefile
index 2606a58b2..5f37ce2fd 100644
--- a/src/Makefile
+++ b/src/Makefile
@@ -304,9 +304,10 @@ endif
 
 .PHONY: kvazaar.pc init_submodules install install-pc install-prog install-lib
 .PHONY: install-dylib install-dll clean
+kvazaar.pc: KVZ_VERSION = $(shell sed -n 's/^#define\s\+KVZ_VERSION\s\+\(.*\)/\1/ p' global.h)
 kvazaar.pc: kvazaar.pc.in Makefile
 	sed -e "s;@prefix@;$(PREFIX);" -e "s;@libdir@;$(LIBDIR);" \
-            -e "s;@VERSION@;$(VER_MAJOR).$(VER_MINOR).$(VER_RELEASE);" \
+            -e "s;@VERSION@;$(KVZ_VERSION);" \
             -e "s;@LIBS@;$(LIBS);" kvazaar.pc.in > $@
 
 init_submodules:
diff --git a/src/global.h b/src/global.h
index a741d7dab..938e9b5fe 100644
--- a/src/global.h
+++ b/src/global.h
@@ -137,7 +137,12 @@ typedef int16_t coeff_t;
 //#define SIGN3(x) ((x) > 0) ? +1 : ((x) == 0 ? 0 : -1)
 #define SIGN3(x) (((x) > 0) - ((x) < 0))
 
-#define VERSION_STRING "0.5.0"
+
+#define QUOTE(x) #x
+#define QUOTE_EXPAND(x) QUOTE(x)
+
+#define KVZ_VERSION 0.5.0
+#define VERSION_STRING QUOTE_EXPAND(KVZ_VERSION)
 
 //#define VERBOSE 1