diff --git a/Config.in.legacy b/Config.in.legacy
index 51b0cfab49..7decb91331 100644
--- a/Config.in.legacy
+++ b/Config.in.legacy
@@ -146,6 +146,22 @@ endif
 
 comment "Legacy options removed in 2017.02"
 
+config BR2_PACKAGE_SPICE_CLIENT
+	bool "spice client support removed"
+	select BR2_LEGACY
+	help
+	  Spice client support has been removed upstream. The
+	  functionality now lives in the spice-gtk widget and
+	  virt-viewer.
+
+config BR2_PACKAGE_SPICE_GUI
+	bool "spice gui support removed"
+	select BR2_LEGACY
+	help
+	  Spice gui support has been removed upstream. The
+	  functionality now lives in the spice-gtk widget and
+	  virt-viewer.
+
 config BR2_PACKAGE_SPICE_TUNNEL
 	bool "spice network redirection removed"
 	select BR2_LEGACY
diff --git a/package/spice/Config.in b/package/spice/Config.in
index 220f9994da..2241b55b3d 100644
--- a/package/spice/Config.in
+++ b/package/spice/Config.in
@@ -22,38 +22,3 @@ config BR2_PACKAGE_SPICE
 	  This package implements the server-part of Spice.
 
 	  http://www.spice-space.org/
-
-if BR2_PACKAGE_SPICE
-
-comment "client depends on X.org"
-	depends on !BR2_PACKAGE_XORG7
-
-config BR2_PACKAGE_SPICE_CLIENT
-	bool "Enable client"
-	depends on BR2_PACKAGE_XORG7
-	depends on BR2_TOOLCHAIN_HAS_THREADS
-	depends on BR2_INSTALL_LIBSTDCPP
-	select BR2_PACKAGE_XLIB_LIBXFIXES
-	select BR2_PACKAGE_XLIB_LIBXRANDR
-	select BR2_PACKAGE_XLIB_LIBX11
-	select BR2_PACKAGE_XLIB_LIBXEXT
-	select BR2_PACKAGE_XLIB_LIBXRENDER
-	select BR2_PACKAGE_ALSA_LIB
-
-comment "client needs a toolchain w/ threads, C++"
-	depends on BR2_PACKAGE_XORG7
-	depends on !BR2_TOOLCHAIN_HAS_THREADS || !BR2_INSTALL_LIBSTDCPP
-
-config BR2_PACKAGE_SPICE_GUI
-	bool "Enable GUI"
-	depends on BR2_PACKAGE_SPICE_CLIENT
-	depends on !BR2_STATIC_LIBS
-	select BR2_PACKAGE_CEGUI06
-	help
-	  Say 'y' here to enable the Graphical User Interface (GUI)
-	  start dialog.
-
-comment "gui needs a toolchain w/ dynamic library"
-	depends on BR2_STATIC_LIBS
-
-endif # BR2_PACKAGE_SPICE
diff --git a/package/spice/spice.hash b/package/spice/spice.hash
index 0a943f0332..04bd516689 100644
--- a/package/spice/spice.hash
+++ b/package/spice/spice.hash
@@ -1,2 +1,2 @@
 # Locally calculated
-sha256	4209a20d8f67cb99a8a6ac499cfe79a18d4ca226360457954a223d6795c2f581	spice-0.12.5.tar.bz2
+sha256	f148ea30135bf80a4f465ce723a1cd6d4ccb34c098b6298a020b378ace8569b6	spice-0.12.6.tar.bz2
diff --git a/package/spice/spice.mk b/package/spice/spice.mk
index 9403b8a18e..45f4030463 100644
--- a/package/spice/spice.mk
+++ b/package/spice/spice.mk
@@ -4,7 +4,7 @@
 #
 ################################################################################
 
-SPICE_VERSION = 0.12.5
+SPICE_VERSION = 0.12.6
 SPICE_SOURCE = spice-$(SPICE_VERSION).tar.bz2
 SPICE_SITE = http://www.spice-space.org/download/releases
 SPICE_LICENSE = LGPLv2.1+
@@ -35,38 +35,36 @@ else
 SPICE_CONF_OPTS += --disable-celt051
 endif
 
+ifeq ($(BR2_PACKAGE_LZ4),y)
+SPICE_CONF_OPTS += --enable-lz4
+SPICE_DEPENDENCIES += lz4
+else
+SPICE_CONF_OPTS += --disable-lz4
+endif
+
 # no enable/disable, detected using pkg-config
 ifeq ($(BR2_PACKAGE_OPUS),y)
 SPICE_DEPENDENCIES += opus
 endif
 
-ifeq ($(BR2_PACKAGE_SPICE_CLIENT),y)
-SPICE_CONF_OPTS += --enable-client
-SPICE_DEPENDENCIES += \
-	xlib_libXfixes \
-	xlib_libXrandr \
-	xlib_libX11 \
-	xlib_libXext \
-	xlib_libXrender \
-	alsa-lib
-else
-SPICE_CONF_OPTS += --disable-client
-endif
-
-ifeq ($(BR2_PACKAGE_SPICE_GUI),y)
-SPICE_CONF_OPTS += --enable-gui
-SPICE_DEPENDENCIES += cegui06
-else
-SPICE_CONF_OPTS += --disable-gui
-endif
+# build system uses pkg-config --variable=codegendir spice-protocol which
+# returns the runtime path rather than build time, so it needs some help
+SPICE_MAKE_OPTS = CODE_GENERATOR_BASEDIR=$(STAGING_DIR)/usr/lib/spice-protocol
+SPICE_INSTALL_STAGING_OPTS = $(SPICE_MAKE_OPTS) DESTDIR=$(STAGING_DIR) install
+SPICE_INSTALL_TARGET_OPTS = $(SPICE_MAKE_OPTS) DESTDIR=$(TARGET_DIR) install
 
 # spice uses a number of source files that are generated with python / pyparsing.
 # The generated files are part of the tarball, so python / pyparsing isn't needed
 # when building from the tarball, but the configure script gets confused and looks
 # for the wrong file name to know if it needs to check for python / pyparsing,
-# so convince it they aren't needed
+# so convince it they aren't needed.
+# It will also regenerate these files if the spice-protocol protocol definition
+# is newer than the generated files (which it will be when spice-protocol
+# installs it to staging), so ensure their timestamp is updated to skip this.
 define SPICE_NO_PYTHON_PYPARSING
+	mkdir -p $(@D)/client
 	touch $(@D)/client/generated_marshallers.cpp
+	touch $(@D)/spice-common/common/generated_*
 endef
 
 SPICE_PRE_CONFIGURE_HOOKS += SPICE_NO_PYTHON_PYPARSING