diff --git a/ChangeLog b/ChangeLog
index 324f367..2ea3f24 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -8,6 +8,16 @@
 	(dist): Make work for DISTFILES in subdirectories.  Normalize and
 	sort DISTFILES.
 
+	* Makefile.in (MISC): Add VERSION.
+	(FORCE): New target.
+	(VERSION): Recompute automatically from repository.
+	(configure): Depend on VERSION.  Regenerate with --force: autoconf
+	does not recognize the dependency between VERSION and ocnfigure.
+	(config.hin): Regenerate with --force.
+	(maintainer-clean): Also remove VERSION.
+	* configure.ac: Compute PACKAGE_VERSION from repository.
+	* update-version.sh: New file.
+
 2009-03-19  Andreas Gruenbacher  <agruen@suse.de>
 
 	Imported from Paul Eggert's working directory:
diff --git a/Makefile.in b/Makefile.in
index cf409e1..d939329 100644
--- a/Makefile.in
+++ b/Makefile.in
@@ -85,10 +85,9 @@ HDRS = argmatch.h backupfile.h common.h dirname.h \
 	inp.h maketime.h partime.h pch.h \
 	quote.h quotearg.h quotesys.h \
 	unlocked-io.h util.h version.h xalloc.h
-MISC = AUTHORS COPYING ChangeLog INSTALL Makefile.in NEWS README \
-	aclocal.m4 \
-	config.hin configure configure.ac \
-	install-sh mkinstalldirs patch.man stdbool_.h timespec.h
+MISC = AUTHORS COPYING ChangeLog INSTALL Makefile.in NEWS README VERSION \
+	aclocal.m4 config.hin configure configure.ac install-sh \
+	mkinstalldirs patch.man stdbool_.h timespec.h
 DISTFILES = $(MISC) $(SRCS) $(HDRS) $(ACINCLUDE_INPUTS) \
 	pc/chdirsaf.c pc/djgpp/config.sed pc/djgpp/configure.bat \
 	pc/djgpp/configure.sed pc/djgpp/README
@@ -129,12 +128,15 @@ uninstall::
 
 Makefile: Makefile.in $(CONFIG_STATUS)
 	$(SHELL) $(CONFIG_STATUS)
+FORCE:
+VERSION: FORCE
+	@cd $(srcdir) && $(SHELL) update-version.sh VERSION
 config.status: configure
 	$(SHELL) $(CONFIG_STATUS) --recheck
-configure: configure.ac $(srcdir)/aclocal.m4
-	cd $(srcdir) && autoconf
+configure: configure.ac $(srcdir)/aclocal.m4 $(srcdir)/VERSION
+	cd $(srcdir) && autoconf --force
 config.hin: configure.ac $(srcdir)/aclocal.m4
-	cd $(srcdir) && rm -f config.hin && autoheader
+	cd $(srcdir) && autoheader --force
 stdbool.h: stdbool_.h
 	sed -e 's/@''HAVE__BOOL''@/$(HAVE__BOOL)/g' < $(srcdir)/stdbool_.h > $@-t
 	mv $@-t $@
@@ -189,7 +191,7 @@ maintainer-clean::
 	@echo "This command is intended for maintainers to use;"
 	@echo "rebuilding the deleted files requires special tools."
 	$(MAKE) distclean
-	rm -f TAGS aclocal.m4 config.hin configure
+	rm -f TAGS VERSION aclocal.m4 config.hin configure
 
 PV = $(PACKAGE_NAME)-$(PACKAGE_VERSION)
 
diff --git a/configure.ac b/configure.ac
index 9959a55..d8b2a40 100644
--- a/configure.ac
+++ b/configure.ac
@@ -19,7 +19,12 @@
 # 02110-1301, USA.
 
 AC_PREREQ(2.57)
-AC_INIT(patch, 2.5.9, bug-patch@gnu.org)
+define(AC_PACKAGE_VERSION, m4_normalize(esyscmd(
+[
+    . update-version.sh VERSION
+    cat VERSION
+])))
+AC_INIT(patch, AC_PACKAGE_VERSION, bug-patch@gnu.org)
 AC_CONFIG_SRCDIR(patch.c)
 AC_CONFIG_HEADER(config.h:config.hin)
 AC_ARG_PROGRAM
diff --git a/update-version.sh b/update-version.sh
new file mode 100644
index 0000000..916b62f
--- /dev/null
+++ b/update-version.sh
@@ -0,0 +1,32 @@
+#! /bin/sh
+
+# (Re)compute version from git repostitory
+# Copyright (C) 2009 Free Software Foundation, Inc.
+#
+# Copying and distribution of this file, with or without modification,
+# in any medium, are permitted without royalty provided the copyright
+# notice and this notice are preserved.
+
+# The version generated is of the form TAG[-SHORTREF[-dirty]], with
+# TAG being the closest tag to the current version and SHORTREF being
+# the first 8 hex digits of the the SHA-1 hash of HEAD.  If there are
+# local changes in the repository, -dirty is added.
+
+version=$1
+
+if git rev-parse --verify HEAD >/dev/null 2>/dev/null \
+   && test -z "`git rev-parse --show-cdup`" ; then
+    set -- `git describe --tags HEAD 2> /dev/null || \
+	    git rev-parse --short HEAD` \
+	   `git update-index --refresh --unmerged > /dev/null
+	    if git diff-index --name-only HEAD | read dummy; then
+	      echo -dirty
+	    fi`
+    echo ${1#v}$2 > .$version.tmp
+    if test ! -e $version \
+       || ! cmp -s .$version.tmp $version ; then
+	mv .$version.tmp $version
+    else
+	rm -f .$version.tmp
+    fi
+fi