diff --git a/Makefile.target b/Makefile.target
index 9878c6494a..1369d45ca7 100644
--- a/Makefile.target
+++ b/Makefile.target
@@ -247,9 +247,6 @@ endif
 
 # xen backend driver support
 obj-$(CONFIG_XEN) += xen_machine_pv.o xen_domainbuild.o
-ifeq ($(CONFIG_XEN), y)
-  LIBS += $(XEN_LIBS)
-endif
 
 # USB layer
 obj-y += usb-ohci.o
diff --git a/configure b/configure
index 28fafd8748..bdab583556 100755
--- a/configure
+++ b/configure
@@ -829,7 +829,7 @@ if test "$xen" = "yes" ; then
 int main(void) { xs_daemon_open(); xc_interface_open(); return 0; }
 EOF
   if compile_prog "" "$xen_libs" ; then
-    :
+    libs_softmmu="$xen_libs $libs_softmmu"
   else
     xen="no"
   fi
@@ -1694,7 +1694,6 @@ if test "$bluez" = "yes" ; then
 fi
 if test "$xen" = "yes" ; then
   echo "CONFIG_XEN=y" >> $config_host_mak
-  echo "XEN_LIBS=$xen_libs" >> $config_host_mak
 fi
 if test "$aio" = "yes" ; then
   echo "CONFIG_AIO=y" >> $config_host_mak