diff --git a/package/Makefile.package.in b/package/Makefile.package.in
index 53cc8eba0b..5987d3823b 100644
--- a/package/Makefile.package.in
+++ b/package/Makefile.package.in
@@ -439,6 +439,12 @@ ifndef $(2)_SITE_METHOD
  endif
 endif
 
+ifeq ($$($(2)_SITE_METHOD),local)
+ifeq ($$($(2)_OVERRIDE_SRCDIR),)
+$(2)_OVERRIDE_SRCDIR = $($(2)_SITE)
+endif
+endif
+
 $(2)_DEPENDENCIES		?=
 $(2)_INSTALL_STAGING		?= NO
 $(2)_INSTALL_IMAGES		?= NO