diff --git a/package/lzo/lzo.mk b/package/lzo/lzo.mk
index 10107fea3b..e9e0b3f9db 100644
--- a/package/lzo/lzo.mk
+++ b/package/lzo/lzo.mk
@@ -4,11 +4,14 @@
 #
 ################################################################################
 
-LZO_VERSION = 2.06
+LZO_VERSION = 2.07
 LZO_SITE = http://www.oberhumer.com/opensource/lzo/download
 LZO_LICENSE = GPLv2+
 LZO_LICENSE_FILES = COPYING
 LZO_INSTALL_STAGING = YES
+# Our libtool patch does not apply to bundled ltmain.sh since it's too new.
+# Run autoreconf to regenerate ltmain.sh.
+LZO_AUTORECONF = YES
 
 $(eval $(autotools-package))
 $(eval $(host-autotools-package))