diff --git a/Makefile.am b/Makefile.am
--- a/Makefile.am
+++ b/Makefile.am
@@ -176,8 +176,11 @@ octave_dirstamp = $(am__leading_dot)octa
 CLEANFILES =
 DISTCLEANFILES =
 MAINTAINERCLEANFILES =
+MOSTLYCLEANFILES =
 info_TEXINFOS =
 BUILT_SOURCES =
+SUFFIXES =
+MOSTLYCLEANDIRS =
 TEST_FILES =
 
 DOC_IMAGES_SRC =
@@ -218,21 +221,7 @@ DIST_SRC =
 
 ALL_LOCAL_TARGETS =
 
-# Subdirectories in which to run make recursively.
-# Other directories are handled directly from this Makefile,
-# but also review the included module.mk makefile fragments.
-
-SUBDIRS = libgnu
-
-# All of build depends on having libgnu.
-# Add the library to BUILT_SOURCES so it is created early in the build process
-# This is only a partial solution which works when 'make all' is used.
-# See bug #45578.
-BUILT_SOURCES += libgnu/libgnu.la
-
-libgnu/libgnu.la: oct-conf-post.h
-	cd libgnu && $(MAKE) $(AM_MAKEFLAGS) all
-
+include libgnu/module.mk
 include liboctave/module.mk
 include libinterp/module.mk
 include libgui/module.mk
diff --git a/bootstrap.conf b/bootstrap.conf
--- a/bootstrap.conf
+++ b/bootstrap.conf
@@ -142,7 +142,7 @@ git        1.5.5
 tar        -
 "
 checkout_only_file=etc/HACKING
-gnulib_tool_option_extras="--libtool"
+gnulib_tool_option_extras="--libtool --non-recursive-makefile --makefile-name=module.mk"
 gnulib_name="libgnu"
 source_base="libgnu"