diff --git a/README.rst b/README.rst
index 4a58a81f..85acae25 100644
--- a/README.rst
+++ b/README.rst
@@ -83,6 +83,11 @@ The HPACK tools require the following package:
 
 * jansson >= 2.5
 
+The Python bindings require the following packages:
+
+* cython >= 0.19
+* python >= 2.7
+
 If you are using Ubuntu 12.04, you need the following packages
 installed:
 
@@ -723,3 +728,37 @@ With ``-d`` option, the extra ``headerTable`` key is added and its
 associated value contains the state of dyanmic header table after the
 corresponding header set was processed. The format is the same as
 ``deflatehd``.
+
+Python bindings
+---------------
+
+This ``python`` directory contains nghttp2 Python bindings. The
+bindings currently only provide HPACK compressor and decompressor
+classes.
+
+The extension module is called ``nghttp2``.
+
+``make`` will build the bindings and target Python version is
+determined by configure script. If the detected Python version is not
+what you expect, specify a path to Python executable in ``PYTHON``
+variable as an argument to configure script (e.g., ``./configure
+PYTHON=/usr/bin/python3.3``).
+
+Example
++++++++
+
+The following example code illustrates basic usage of HPACK compressor
+and decompressor in Python::
+
+    import binascii
+    import nghttp2
+
+    deflater = nghttp2.HDDeflater(nghttp2.HD_SIDE_REQUEST)
+    inflater = nghttp2.HDInflater(nghttp2.HD_SIDE_REQUEST)
+
+    data = deflater.deflate([(b'foo', b'bar'),
+			     (b'baz', b'buz')])
+    print(binascii.b2a_hex(data))
+
+    hdrs = inflater.inflate(data)
+    print(hdrs)
diff --git a/configure.ac b/configure.ac
index 31db7222..ce30ccf3 100644
--- a/configure.ac
+++ b/configure.ac
@@ -68,6 +68,11 @@ AC_ARG_ENABLE([examples],
                     [Build examples [default=check]])],
     [request_examples=$enableval], [request_examples=check])
 
+AC_ARG_ENABLE([python-bindings],
+    [AS_HELP_STRING([--enable-python-bindings],
+                    [Build Python bindings [default=check]])],
+    [request_python_bindings=$enableval], [request_python_bindings=check])
+
 AC_ARG_ENABLE([failmalloc],
     [AS_HELP_STRING([--enable-failmalloc],
                     [Build failmalloc test program [default=no]])],
@@ -78,6 +83,11 @@ AC_ARG_WITH([libxml2],
                     [Use libxml2 [default=check]])],
     [request_libxml2=$withval], [request_libxml2=check])
 
+AC_ARG_WITH([cython],
+    [AS_HELP_STRING([--with-cython=PATH],
+                    [Use cython in given PATH])],
+    [cython_path=$withval], [])
+
 dnl Define variables
 AC_ARG_VAR([CYTHON], [the Cython executable])
 
@@ -89,8 +99,15 @@ AC_PROG_LN_S
 AC_PROG_MAKE_SET
 AM_PROG_CC_C_O
 PKG_PROG_PKG_CONFIG([0.20])
-AM_PATH_PYTHON([2.6],, [:])
-AC_CHECK_PROGS([CYTHON], [cython.py cython])
+AM_PATH_PYTHON([2.7],, [:])
+AX_PYTHON_DEVEL([>= '2.7'])
+
+if test "x${cython_path}" = "x"; then
+  AC_CHECK_PROGS([CYTHON], [cython.py cython])
+else
+  CYTHON=${cython_path}
+  AC_SUBST([CYTHON])
+fi
 
 AX_CXX_COMPILE_STDCXX_11([noext], [optional])
 
@@ -280,6 +297,22 @@ fi
 
 AM_CONDITIONAL([ENABLE_EXAMPLES], [ test "x${enable_examples}" = "xyes" ])
 
+# Python bindings
+enable_python_bindings=no
+if test "x${request_python_bindings}" != "xno" &&
+   test "x${CYTHON}" != "x" &&
+   test "x${PYTHON}" != ":"; then
+  enable_python_bindings=yes
+fi
+
+if test "x${request_python_bindings}" = "xyes" &&
+   test "x${enable_python_bindings}" != "xyes"; then
+  AC_MSG_ERROR([python bindings were requested (--enable-python-bindings) but dependencies are not met.])
+fi
+
+AM_CONDITIONAL([ENABLE_PYTHON_BINDINGS],
+               [test "x${enable_python_bindings}" = "xyes"])
+
 # failmalloc tests
 AM_CONDITIONAL([ENABLE_FAILMALLOC], [ test "x${enable_failmalloc}" = "xyes" ])
 
@@ -379,7 +412,11 @@ AC_MSG_NOTICE([summary of build options:
     CXXFLAGS:       ${CXXFLAGS}
     CXXCPP:         ${CXXCPP}
     Library types:  Shared=${enable_shared}, Static=${enable_static}
-    Python:         ${PYTHON} ${PYTHON_VERSION}
+    Python:         ${PYTHON}
+    PYTHON_VERSION: ${PYTHON_VERSION}
+    pyexecdir:      ${pyexecdir}
+    PYTHON_CPPFLAGS:${PYTHON_CPPFLAGS}
+    PYTHON_LDFLAGS: ${PYTHON_LDFLAGS}
     Cython:         ${CYTHON}
     CUnit:          ${have_cunit}
     OpenSSL:        ${have_openssl}
@@ -390,5 +427,6 @@ AC_MSG_NOTICE([summary of build options:
     Applications:   ${enable_app}
     HPACK tools:    ${enable_hpack_tools}
     Examples:       ${enable_examples}
+    Python bindings:${enable_python_bindings}
     Failmalloc:     ${request_failmalloc}
 ])
diff --git a/m4/ax_python_devel.m4 b/m4/ax_python_devel.m4
new file mode 100644
index 00000000..cf2163c9
--- /dev/null
+++ b/m4/ax_python_devel.m4
@@ -0,0 +1,324 @@
+# ===========================================================================
+#      http://www.gnu.org/software/autoconf-archive/ax_python_devel.html
+# ===========================================================================
+#
+# SYNOPSIS
+#
+#   AX_PYTHON_DEVEL([version])
+#
+# DESCRIPTION
+#
+#   Note: Defines as a precious variable "PYTHON_VERSION". Don't override it
+#   in your configure.ac.
+#
+#   This macro checks for Python and tries to get the include path to
+#   'Python.h'. It provides the $(PYTHON_CPPFLAGS) and $(PYTHON_LDFLAGS)
+#   output variables. It also exports $(PYTHON_EXTRA_LIBS) and
+#   $(PYTHON_EXTRA_LDFLAGS) for embedding Python in your code.
+#
+#   You can search for some particular version of Python by passing a
+#   parameter to this macro, for example ">= '2.3.1'", or "== '2.4'". Please
+#   note that you *have* to pass also an operator along with the version to
+#   match, and pay special attention to the single quotes surrounding the
+#   version number. Don't use "PYTHON_VERSION" for this: that environment
+#   variable is declared as precious and thus reserved for the end-user.
+#
+#   This macro should work for all versions of Python >= 2.1.0. As an end
+#   user, you can disable the check for the python version by setting the
+#   PYTHON_NOVERSIONCHECK environment variable to something else than the
+#   empty string.
+#
+#   If you need to use this macro for an older Python version, please
+#   contact the authors. We're always open for feedback.
+#
+# LICENSE
+#
+#   Copyright (c) 2009 Sebastian Huber <sebastian-huber@web.de>
+#   Copyright (c) 2009 Alan W. Irwin
+#   Copyright (c) 2009 Rafael Laboissiere <rafael@laboissiere.net>
+#   Copyright (c) 2009 Andrew Collier
+#   Copyright (c) 2009 Matteo Settenvini <matteo@member.fsf.org>
+#   Copyright (c) 2009 Horst Knorr <hk_classes@knoda.org>
+#   Copyright (c) 2013 Daniel Mullner <muellner@math.stanford.edu>
+#
+#   This program is free software: you can redistribute it and/or modify it
+#   under the terms of the GNU General Public License as published by the
+#   Free Software Foundation, either version 3 of the License, or (at your
+#   option) any later version.
+#
+#   This program is distributed in the hope that it will be useful, but
+#   WITHOUT ANY WARRANTY; without even the implied warranty of
+#   MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the GNU General
+#   Public License for more details.
+#
+#   You should have received a copy of the GNU General Public License along
+#   with this program. If not, see <http://www.gnu.org/licenses/>.
+#
+#   As a special exception, the respective Autoconf Macro's copyright owner
+#   gives unlimited permission to copy, distribute and modify the configure
+#   scripts that are the output of Autoconf when processing the Macro. You
+#   need not follow the terms of the GNU General Public License when using
+#   or distributing such scripts, even though portions of the text of the
+#   Macro appear in them. The GNU General Public License (GPL) does govern
+#   all other use of the material that constitutes the Autoconf Macro.
+#
+#   This special exception to the GPL applies to versions of the Autoconf
+#   Macro released by the Autoconf Archive. When you make and distribute a
+#   modified version of the Autoconf Macro, you may extend this special
+#   exception to the GPL to apply to your modified version as well.
+
+#serial 16
+
+AU_ALIAS([AC_PYTHON_DEVEL], [AX_PYTHON_DEVEL])
+AC_DEFUN([AX_PYTHON_DEVEL],[
+	#
+	# Allow the use of a (user set) custom python version
+	#
+	AC_ARG_VAR([PYTHON_VERSION],[The installed Python
+		version to use, for example '2.3'. This string
+		will be appended to the Python interpreter
+		canonical name.])
+
+	AC_PATH_PROG([PYTHON],[python[$PYTHON_VERSION]])
+	if test -z "$PYTHON"; then
+	   AC_MSG_ERROR([Cannot find python$PYTHON_VERSION in your system path])
+	   PYTHON_VERSION=""
+	fi
+
+	#
+	# Check for a version of Python >= 2.1.0
+	#
+	AC_MSG_CHECKING([for a version of Python >= '2.1.0'])
+	ac_supports_python_ver=`$PYTHON -c "import sys; \
+		ver = sys.version.split ()[[0]]; \
+		print (ver >= '2.1.0')"`
+	if test "$ac_supports_python_ver" != "True"; then
+		if test -z "$PYTHON_NOVERSIONCHECK"; then
+			AC_MSG_RESULT([no])
+			AC_MSG_FAILURE([
+This version of the AC@&t@_PYTHON_DEVEL macro
+doesn't work properly with versions of Python before
+2.1.0. You may need to re-run configure, setting the
+variables PYTHON_CPPFLAGS, PYTHON_LDFLAGS, PYTHON_SITE_PKG,
+PYTHON_EXTRA_LIBS and PYTHON_EXTRA_LDFLAGS by hand.
+Moreover, to disable this check, set PYTHON_NOVERSIONCHECK
+to something else than an empty string.
+])
+		else
+			AC_MSG_RESULT([skip at user request])
+		fi
+	else
+		AC_MSG_RESULT([yes])
+	fi
+
+	#
+	# if the macro parameter ``version'' is set, honour it
+	#
+	if test -n "$1"; then
+		AC_MSG_CHECKING([for a version of Python $1])
+		ac_supports_python_ver=`$PYTHON -c "import sys; \
+			ver = sys.version.split ()[[0]]; \
+			print (ver $1)"`
+		if test "$ac_supports_python_ver" = "True"; then
+		   AC_MSG_RESULT([yes])
+		else
+			AC_MSG_RESULT([no])
+			AC_MSG_ERROR([this package requires Python $1.
+If you have it installed, but it isn't the default Python
+interpreter in your system path, please pass the PYTHON_VERSION
+variable to configure. See ``configure --help'' for reference.
+])
+			PYTHON_VERSION=""
+		fi
+	fi
+
+	#
+	# Check if you have distutils, else fail
+	#
+	AC_MSG_CHECKING([for the distutils Python package])
+	ac_distutils_result=`$PYTHON -c "import distutils" 2>&1`
+	if test -z "$ac_distutils_result"; then
+		AC_MSG_RESULT([yes])
+	else
+		AC_MSG_RESULT([no])
+		AC_MSG_ERROR([cannot import Python module "distutils".
+Please check your Python installation. The error was:
+$ac_distutils_result])
+		PYTHON_VERSION=""
+	fi
+
+	#
+	# Check for Python include path
+	#
+	AC_MSG_CHECKING([for Python include path])
+	if test -z "$PYTHON_CPPFLAGS"; then
+		python_path=`$PYTHON -c "import distutils.sysconfig; \
+			print (distutils.sysconfig.get_python_inc ());"`
+		plat_python_path=`$PYTHON -c "import distutils.sysconfig; \
+			print (distutils.sysconfig.get_python_inc (plat_specific=1));"`
+		if test -n "${python_path}"; then
+			if test "${plat_python_path}" != "${python_path}"; then
+				python_path="-I$python_path -I$plat_python_path"
+			else
+				python_path="-I$python_path"
+			fi
+		fi
+		PYTHON_CPPFLAGS=$python_path
+	fi
+	AC_MSG_RESULT([$PYTHON_CPPFLAGS])
+	AC_SUBST([PYTHON_CPPFLAGS])
+
+	#
+	# Check for Python library path
+	#
+	AC_MSG_CHECKING([for Python library path])
+	if test -z "$PYTHON_LDFLAGS"; then
+		# (makes two attempts to ensure we've got a version number
+		# from the interpreter)
+		ac_python_version=`cat<<EOD | $PYTHON -
+
+# join all versioning strings, on some systems
+# major/minor numbers could be in different list elements
+from distutils.sysconfig import *
+e = get_config_var('VERSION')
+if e is not None:
+	print(e)
+EOD`
+
+		if test -z "$ac_python_version"; then
+			if test -n "$PYTHON_VERSION"; then
+				ac_python_version=$PYTHON_VERSION
+			else
+				ac_python_version=`$PYTHON -c "import sys; \
+					print (sys.version[[:3]])"`
+			fi
+		fi
+
+		# Make the versioning information available to the compiler
+		AC_DEFINE_UNQUOTED([HAVE_PYTHON], ["$ac_python_version"],
+                                   [If available, contains the Python version number currently in use.])
+
+		# First, the library directory:
+		ac_python_libdir=`cat<<EOD | $PYTHON -
+
+# There should be only one
+import distutils.sysconfig
+e = distutils.sysconfig.get_config_var('LIBDIR')
+if e is not None:
+	print (e)
+EOD`
+
+		# Now, for the library:
+		ac_python_library=`cat<<EOD | $PYTHON -
+
+import distutils.sysconfig
+c = distutils.sysconfig.get_config_vars()
+if 'LDVERSION' in c:
+	print ('python'+c[['LDVERSION']])
+else:
+	print ('python'+c[['VERSION']])
+EOD`
+
+		# This small piece shamelessly adapted from PostgreSQL python macro;
+		# credits goes to momjian, I think. I'd like to put the right name
+		# in the credits, if someone can point me in the right direction... ?
+		#
+		if test -n "$ac_python_libdir" -a -n "$ac_python_library"
+		then
+			# use the official shared library
+			ac_python_library=`echo "$ac_python_library" | sed "s/^lib//"`
+			PYTHON_LDFLAGS="-L$ac_python_libdir -l$ac_python_library"
+		else
+			# old way: use libpython from python_configdir
+			ac_python_libdir=`$PYTHON -c \
+			  "from distutils.sysconfig import get_python_lib as f; \
+			  import os; \
+			  print (os.path.join(f(plat_specific=1, standard_lib=1), 'config'));"`
+			PYTHON_LDFLAGS="-L$ac_python_libdir -lpython$ac_python_version"
+		fi
+
+		if test -z "PYTHON_LDFLAGS"; then
+			AC_MSG_ERROR([
+  Cannot determine location of your Python DSO. Please check it was installed with
+  dynamic libraries enabled, or try setting PYTHON_LDFLAGS by hand.
+			])
+		fi
+	fi
+	AC_MSG_RESULT([$PYTHON_LDFLAGS])
+	AC_SUBST([PYTHON_LDFLAGS])
+
+	#
+	# Check for site packages
+	#
+	AC_MSG_CHECKING([for Python site-packages path])
+	if test -z "$PYTHON_SITE_PKG"; then
+		PYTHON_SITE_PKG=`$PYTHON -c "import distutils.sysconfig; \
+			print (distutils.sysconfig.get_python_lib(0,0));"`
+	fi
+	AC_MSG_RESULT([$PYTHON_SITE_PKG])
+	AC_SUBST([PYTHON_SITE_PKG])
+
+	#
+	# libraries which must be linked in when embedding
+	#
+	AC_MSG_CHECKING(python extra libraries)
+	if test -z "$PYTHON_EXTRA_LIBS"; then
+	   PYTHON_EXTRA_LIBS=`$PYTHON -c "import distutils.sysconfig; \
+                conf = distutils.sysconfig.get_config_var; \
+                print (conf('LIBS'))"`
+	fi
+	AC_MSG_RESULT([$PYTHON_EXTRA_LIBS])
+	AC_SUBST(PYTHON_EXTRA_LIBS)
+
+	#
+	# linking flags needed when embedding
+	#
+	AC_MSG_CHECKING(python extra linking flags)
+	if test -z "$PYTHON_EXTRA_LDFLAGS"; then
+		PYTHON_EXTRA_LDFLAGS=`$PYTHON -c "import distutils.sysconfig; \
+			conf = distutils.sysconfig.get_config_var; \
+			print (conf('LINKFORSHARED'))"`
+	fi
+	AC_MSG_RESULT([$PYTHON_EXTRA_LDFLAGS])
+	AC_SUBST(PYTHON_EXTRA_LDFLAGS)
+
+	#
+	# final check to see if everything compiles alright
+	#
+	AC_MSG_CHECKING([consistency of all components of python development environment])
+	# save current global flags
+	ac_save_LIBS="$LIBS"
+	ac_save_CPPFLAGS="$CPPFLAGS"
+	LIBS="$ac_save_LIBS $PYTHON_LDFLAGS $PYTHON_EXTRA_LDFLAGS $PYTHON_EXTRA_LIBS"
+	CPPFLAGS="$ac_save_CPPFLAGS $PYTHON_CPPFLAGS"
+	AC_LANG_PUSH([C])
+	AC_LINK_IFELSE([
+		AC_LANG_PROGRAM([[#include <Python.h>]],
+				[[Py_Initialize();]])
+		],[pythonexists=yes],[pythonexists=no])
+	AC_LANG_POP([C])
+	# turn back to default flags
+	CPPFLAGS="$ac_save_CPPFLAGS"
+	LIBS="$ac_save_LIBS"
+
+	AC_MSG_RESULT([$pythonexists])
+
+        if test ! "x$pythonexists" = "xyes"; then
+	   AC_MSG_FAILURE([
+  Could not link test program to Python. Maybe the main Python library has been
+  installed in some non-standard library path. If so, pass it to configure,
+  via the LDFLAGS environment variable.
+  Example: ./configure LDFLAGS="-L/usr/non-standard-path/python/lib"
+  ============================================================================
+   ERROR!
+   You probably have to install the development version of the Python package
+   for your distribution.  The exact name of this package varies among them.
+  ============================================================================
+	   ])
+	  PYTHON_VERSION=""
+	fi
+
+	#
+	# all done!
+	#
+])
diff --git a/python/Makefile.am b/python/Makefile.am
index 5593bce0..7ae672c1 100644
--- a/python/Makefile.am
+++ b/python/Makefile.am
@@ -21,20 +21,26 @@
 # OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION
 # WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
 
-EXTRA_DIST = README.rst cnghttp2.pxd nghttp2.pyx setup.py
+EXTRA_DIST = cnghttp2.pxd setup.py
 
-PYSETUP_INCLUDE_DIRS=$(top_srcdir)/lib/includes:$(top_srcdir)/lib
-PYSETUP_LIBDIRS=$(top_builddir)/lib/.libs
+if ENABLE_PYTHON_BINDINGS
 
-.PHONY: help build_ext
+distclean-local:
+	-rm -f nghttp2.c
 
-help:
-	@echo "Please use \`make <target>\` where <target> is one of"
-	@echo "  build_ext  to build Python @PYTHON_VERSION@ nghttp2 extension"
+.pyx.c:
+	$(CYTHON) -o $@ $<
 
-nghttp2.c: nghttp2.pyx cnghttp2.pxd
-	$(CYTHON) nghttp2.pyx
+pyexec_LTLIBRARIES = nghttp2.la
+nghttp2_la_SOURCES = nghttp2.pyx
+nghttp2_la_CPPFLAGS = \
+	$(PYTHON_CPPFLAGS) \
+	-I$(top_srcdir)/lib/includes \
+	-I$(build_srcdir)/lib/includes \
+	-I$(top_srcdir)/lib
+nghttp2_la_LDFLAGS = \
+	$(PYTHON_LDFLAGS) \
+	-avoid-version -module
+nghttp2_la_LIBADD = $(top_builddir)/lib/libnghttp2.la
 
-build_ext: nghttp2.c
-	$(PYTHON) setup.py build_ext --include-dirs=$(PYSETUP_INCLUDE_DIRS) \
-	    --library-dirs=$(PYSETUP_LIBDIRS)
+endif # ENABLE_PYTHON_BINDINGS
diff --git a/python/README.rst b/python/README.rst
deleted file mode 100644
index dbb1fb21..00000000
--- a/python/README.rst
+++ /dev/null
@@ -1,42 +0,0 @@
-nghttp2 Python C extension module
-=================================
-
-This directory contains nghttp2 Python C extension module.  Currently,
-header compressor and decompressor are implemented in extension using
-cython.
-
-This is experimental and adds some dependencies which is a bit hard to
-check, so this extension module does not built with usual ``make`` in
-the top directory. Instead, a user has to run ``make build_ext`` in
-this directory.
-
-The build extension module is called ``nghttp2``.
-
-The module refers to the libnghttp2.so. If nghttp2 is installed using
-``make install``, then importing nghttp2 module should work.  If a
-user does not want to install nghttp2, then use ``LD_LIBRARY_PATH``
-pointing to the location of libnghttp2.so, which is usually in
-``lib/.libs``. If a user also does not want to install nghttp2 module,
-use PYTHONPATH to point the location of extension module. This depends
-on the architecture and Python version. For example, x86_64
-architecture and Python 2.7 series, a module will be located at
-``build/lib.linux-x86_64-2.7``.
-
-Header compression
-------------------
-
-The following example code illustrates basic usage of compressor and
-decompressor::
-
-    import binascii
-    import nghttp2
-
-    deflater = nghttp2.HDDeflater(nghttp2.HD_SIDE_REQUEST)
-    inflater = nghttp2.HDInflater(nghttp2.HD_SIDE_REQUEST)
-
-    data = deflater.deflate([(b'foo', b'bar'),
-			     (b'baz', b'buz')])
-    print(binascii.b2a_hex(data))
-
-    hdrs = inflater.inflate(data)
-    print(hdrs)