diff --git a/package/xterm/Config.in b/package/xterm/Config.in
index 9473fad85e..99c89cfc78 100644
--- a/package/xterm/Config.in
+++ b/package/xterm/Config.in
@@ -1,5 +1,6 @@
 config BR2_PACKAGE_XTERM
 	bool "xterm"
+	select BR2_PACKAGE_NCURSES
 	select BR2_PACKAGE_XLIB_LIBXAW
 	depends on BR2_PACKAGE_XORG7
 	help
diff --git a/package/xterm/xterm.mk b/package/xterm/xterm.mk
index 8952e24dfc..ab3fc10bdc 100644
--- a/package/xterm/xterm.mk
+++ b/package/xterm/xterm.mk
@@ -4,10 +4,10 @@
 #
 #############################################################
 
-XTERM_VERSION:=262
-XTERM_SOURCE:=xterm-$(XTERM_VERSION).tgz
-XTERM_SITE:=ftp://invisible-island.net/xterm
-XTERM_DEPENDENCIES = xserver_xorg-server xlib_libXaw
+XTERM_VERSION = 267
+XTERM_SOURCE = xterm-$(XTERM_VERSION).tgz
+XTERM_SITE = ftp://invisible-island.net/xterm
+XTERM_DEPENDENCIES = ncurses xserver_xorg-server xlib_libXaw
 XTERM_INSTALL_TARGET_OPT = DESTDIR=$(TARGET_DIR) install
 
 $(eval $(call AUTOTARGETS,package,xterm))