diff --git a/.gitignore b/.gitignore
index 6e59496..deea910 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,3 +1,4 @@
 linux-*.tar.bz2
+linux-*.tar.xz
 linux-*.sign
 kernel-*/
diff --git a/Makefile b/Makefile
index dad5ff6..03157ca 100644
--- a/Makefile
+++ b/Makefile
@@ -36,7 +36,7 @@ all: help
 
 MIRROR := ftp.kernel.org
 SRC_BASEURL := http://${MIRROR}/pub/linux/kernel/v$(shell echo $(VERSION) | sed 's/^\(2\.[0-9]*\).*/\1/;s/^3\..*/3.x/')
-SRC_FILE := linux-${VERSION}.tar.bz2
+SRC_FILE := linux-${VERSION}.tar.xz
 ifeq ($(BUILD_FLAVOR),pvops)
 SIGN_FILE := linux-${VERSION}.tar.sign
 else
@@ -60,7 +60,7 @@ import-keys:
 
 verify-sources: import-keys
 ifeq ($(BUILD_FLAVOR),pvops)
-	@bzcat $(SRC_FILE) | gpg -q --verify $(SIGN_FILE) - 2>/dev/null
+	@xzcat $(SRC_FILE) | gpg -q --verify $(SIGN_FILE) - 2>/dev/null
 else
 #	@gpg --verify $(SIGN_FILE) $(SRC_FILE)
 #	The key has been compromised
diff --git a/kernel.spec b/kernel.spec
index d960d6f..ee7f00b 100644
--- a/kernel.spec
+++ b/kernel.spec
@@ -70,7 +70,7 @@ Conflicts:      lvm2 < 2.02.33
 Provides:       kernel = %kernelrelease
 Provides:       kernel-uname-r = %kernelrelease
 
-Source0:        linux-%version.tar.bz2
+Source0:        linux-%version.tar.xz
 Source14:       series-%{build_flavor}.conf
 Source16:       guards
 Source17:       apply-patches
@@ -89,7 +89,7 @@ ExclusiveArch:  x86_64
 Qubes Dom0 kernel.
 
 %prep
-if ! [ -e %_sourcedir/linux-%version.tar.bz2 ]; then
+if ! [ -e %_sourcedir/linux-%version.tar.xz ]; then
     echo "The %name-%version.nosrc.rpm package does not contain the" \
 	 "complete sources. Please install kernel-source-%version.src.rpm."
     exit 1