diff --git a/ChangeLog b/ChangeLog
index 5d28b80b08..5db3e41cd5 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,8 @@
+2002-02-06	Ralf Corsepius <corsepiu@faw.uni-ulm.de>
+
+	* aclocal/subdirs.m4: Propagate the current $prefix to the
+	sub-configures.
+
 2002-02-05	Joel Sherrill <joel@OARcorp.com>
 
 	* VERSION: Updated to rtems-ss-20020205.
diff --git a/aclocal/subdirs.m4 b/aclocal/subdirs.m4
index fd51d1f231..e48e6e3236 100644
--- a/aclocal/subdirs.m4
+++ b/aclocal/subdirs.m4
@@ -194,10 +194,14 @@ if test "$no_recursion" != yes; then
     esac
   done
 
+  # Always prepend --prefix to ensure using the same prefix
+  # in subdir configurations.
+  ac_sub_configure_args="--prefix=$prefix $ac_sub_configure_args"
+
   case "$$1_subdir" in
   "." ) ;;
   * )
-    ac_sub_configure_args="$ac_sub_configure_args --with-target-subdir=$$1_subdir --exec-prefix=\${prefix}/$$1_subdir"
+    ac_sub_configure_args="$ac_sub_configure_args --with-target-subdir=$$1_subdir --exec-prefix=${prefix}/$$1_subdir"
     ;;
   esac