diff --git a/import-layers/yocto-poky/meta/classes/package_ipk.bbclass b/import-layers/yocto-poky/meta/classes/package_ipk.bbclass
index 6c1fdaa..a0b34fa 100644
--- a/import-layers/yocto-poky/meta/classes/package_ipk.bbclass
+++ b/import-layers/yocto-poky/meta/classes/package_ipk.bbclass
@@ -8,7 +8,7 @@
 PKGWRITEDIRIPK = "${WORKDIR}/deploy-ipks"
 
 # Program to be used to build opkg packages
-OPKGBUILDCMD ??= "opkg-build"
+OPKGBUILDCMD ??= "opkg-build -Z xz"
 
 OPKG_ARGS += "--force_postinstall --prefer-arch-to-version"
 OPKG_ARGS += "${@['', '--no-install-recommends'][d.getVar("NO_RECOMMENDATIONS") == "1"]}"
@@ -307,7 +307,7 @@
 
 python () {
     if d.getVar('PACKAGES') != '':
-        deps = ' opkg-utils-native:do_populate_sysroot virtual/fakeroot-native:do_populate_sysroot'
+        deps = ' opkg-utils-native:do_populate_sysroot virtual/fakeroot-native:do_populate_sysroot xz-native:do_populate_sysroot'
         d.appendVarFlag('do_package_write_ipk', 'depends', deps)
         d.setVarFlag('do_package_write_ipk', 'fakeroot', "1")
 }