diff --git a/.gitignore b/.gitignore
index c1631ef..5111fd0 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,3 +1,4 @@
+MANIFEST
 build
 dist
 pygit2.so
diff --git a/MANIFEST b/MANIFEST
deleted file mode 100644
index 4f99261..0000000
--- a/MANIFEST
+++ /dev/null
@@ -1,75 +0,0 @@
-AUTHORS
-COPYING
-README.rst
-TODO.txt
-include/pygit2/commit.h
-include/pygit2/config.h
-include/pygit2/diff.h
-include/pygit2/error.h
-include/pygit2/index.h
-include/pygit2/object.h
-include/pygit2/oid.h
-include/pygit2/reference.h
-include/pygit2/repository.h
-include/pygit2/signature.h
-include/pygit2/tag.h
-include/pygit2/tree.h
-include/pygit2/types.h
-include/pygit2/utils.h
-include/pygit2/walker.h
-pygit2/__init__.py
-pygit2/utils.py
-setup.py
-src/pygit2.c
-src/pygit2/blob.c
-src/pygit2/commit.c
-src/pygit2/config.c
-src/pygit2/diff.c
-src/pygit2/error.c
-src/pygit2/index.c
-src/pygit2/object.c
-src/pygit2/oid.c
-src/pygit2/reference.c
-src/pygit2/repository.c
-src/pygit2/signature.c
-src/pygit2/tag.c
-src/pygit2/tree.c
-src/pygit2/utils.c
-src/pygit2/walker.c
-test/__init__.py
-test/data/dirtyrepo.tar
-test/data/testrepo.git/HEAD
-test/data/testrepo.git/config
-test/data/testrepo.git/objects/29/7efb891a47de80be0cfe9c639e4b8c9b450989
-test/data/testrepo.git/objects/2a/d1d3456c5c4a1c9e40aeeddb9cd20b409623c8
-test/data/testrepo.git/objects/2c/dae28389c059815e951d0bb9eed6533f61a46b
-test/data/testrepo.git/objects/39/a3001fcc2b9541fdcf4be2d662618a5d213f47
-test/data/testrepo.git/objects/3d/2962987c695a29f1f80b6c3aa4ec046ef44369
-test/data/testrepo.git/objects/5f/e808e8953c12735680c257f56600cb0de44b10
-test/data/testrepo.git/objects/61/4fd9a3094bf618ea938fffc00e7d1a54f89ad0
-test/data/testrepo.git/objects/6a/270c81bc80b59591e0d2e3abd7d03450c0c395
-test/data/testrepo.git/objects/72/abb8755b2cc6c4e40fd9f50f54384d973a2f22
-test/data/testrepo.git/objects/7f/129fd57e31e935c6d60a0c794efe4e6927664b
-test/data/testrepo.git/objects/96/7fce8df97cc71722d3c2a5930ef3e6f1d27b12
-test/data/testrepo.git/objects/97/d615e1bc273c40c94a726814e7b93fdb5a1b36
-test/data/testrepo.git/objects/info/packs
-test/data/testrepo.git/objects/pack/pack-822653eb59791a6df714f8aa5fbf9f1c1951478e.idx
-test/data/testrepo.git/objects/pack/pack-822653eb59791a6df714f8aa5fbf9f1c1951478e.pack
-test/data/testrepo.git/packed-refs
-test/data/testrepo.git/refs/heads/master
-test/data/testrepo.git/refs/tags/root
-test/data/testrepo.tar
-test/test_blob.py
-test/test_commit.py
-test/test_config.py
-test/test_diff.py
-test/test_index.py
-test/test_refs.py
-test/test_repository.py
-test/test_revwalk.py
-test/test_signature.py
-test/test_status.py
-test/test_tag.py
-test/test_tree.py
-test/test_treebuilder.py
-test/utils.py
diff --git a/TODO.txt b/TODO.txt
index 6b8cffa..4a48a28 100644
--- a/TODO.txt
+++ b/TODO.txt
@@ -18,4 +18,3 @@ Other
   PyObject_Del or similar) if the type is subclassable. So, go through the
   code and switch to tp_free, or make the type not subclassable, on a case by
   case basis.
-- Automatically generate the MANIFEST file using "git ls-files"
diff --git a/setup.py b/setup.py
index 719d2a5..6fa1c5b 100644
--- a/setup.py
+++ b/setup.py
@@ -28,12 +28,17 @@
 
 """Setup file for pygit2."""
 
+from __future__ import print_function
+
 import os
+from subprocess import Popen, PIPE
 import sys
 from distutils.core import setup, Extension, Command
 from distutils.command.build import build
+from distutils.command.sdist import sdist
 from distutils import log
 
+
 # Use environment variable LIBGIT2 to set your own libgit2 configuration.
 libgit2_path = os.getenv("LIBGIT2")
 if libgit2_path is None:
@@ -117,7 +122,31 @@ class BuildWithDLLs(build):
                 self.copy_file(s, d)
 
 
-cmdclass = {'test': TestCommand}
+class sdist_files_from_git(sdist):
+    def get_file_list(self):
+        popen = Popen(['git', 'ls-files'], stdout=PIPE, stderr=PIPE)
+        stdoutdata, stderrdata = popen.communicate()
+        if popen.returncode != 0:
+            print(stderrdata)
+            sys.exit()
+
+        for line in stdoutdata.splitlines():
+            # Skip hidden files at the root
+            if line[0] == '.':
+                continue
+            self.filelist.append(line)
+
+        # Ok
+        self.filelist.sort()
+        self.filelist.remove_duplicates()
+        self.write_manifest()
+
+
+
+cmdclass = {
+    'test': TestCommand,
+    'sdist': sdist_files_from_git}
+
 if os.name == 'nt':
     # BuildWithDLLs can copy external DLLs into source directory.
     cmdclass['build'] = BuildWithDLLs