diff --git a/configure.ac b/configure.ac
index 028737f..225d1fa 100644
--- a/configure.ac
+++ b/configure.ac
@@ -127,10 +127,13 @@ mate-terminal.desktop.in
 src/Makefile
 src/org.mate.terminal.gschema.xml
 src/terminal-version.h
-src/skey/Makefile
 help/Makefile
 po/Makefile.in
 ])
+
+AM_COND_IF([ENABLE_SKEY],
+           [AC_CONFIG_FILES([src/skey/Makefile])])
+
 AC_OUTPUT
 
 # ****************************
diff --git a/src/Makefile.am b/src/Makefile.am
index 938120c..85a360e 100644
--- a/src/Makefile.am
+++ b/src/Makefile.am
@@ -90,9 +90,13 @@ mate_terminal_CFLAGS = \
 mate_terminal_LDFLAGS = -lICE
 
 mate_terminal_LDADD = \
-	skey/libskey.la \
 	$(TERM_LIBS)
 
+if ENABLE_SKEY
+mate_terminal_LDADD += \
+	skey/libskey.la
+endif
+
 mate_terminal_SOURCES += \
 	eggdesktopfile.c \
 	eggdesktopfile.h \