diff --git a/fuelweb_test/requirements-devops-source.txt b/fuelweb_test/requirements-devops-source.txt
new file mode 100644
index 000000000..3d8518013
--- /dev/null
+++ b/fuelweb_test/requirements-devops-source.txt
@@ -0,0 +1,4 @@
+# TODO(ddmitriev): remove this requirement when fuel-devops
+# will be available as a PyPi package.
+# Check virtual environment update scripts on CI first.
+git+git://github.com/openstack/fuel-devops.git@2.9.20
diff --git a/fuelweb_test/requirements-devops.txt b/fuelweb_test/requirements-devops.txt
new file mode 100644
index 000000000..08278b083
--- /dev/null
+++ b/fuelweb_test/requirements-devops.txt
@@ -0,0 +1,3 @@
+# TODO(ddmitriev): move this requirement to requirements.txt
+# when fuel-devops will be available as a PyPi package
+fuel-devops>=2.9.20
diff --git a/fuelweb_test/requirements.txt b/fuelweb_test/requirements.txt
index a6001bc4b..d2a3d0f88 100644
--- a/fuelweb_test/requirements.txt
+++ b/fuelweb_test/requirements.txt
@@ -1,7 +1,6 @@
 nose==1.2.1
-git+git://github.com/openstack/fuel-devops.git@2.9.19
-anyjson==0.3.1
-paramiko
+anyjson>=0.3.3  # BSD
+paramiko>=1.16.0  # LGPL
 proboscis==1.2.6.0
 ipaddr
 junitxml>=0.7.0
diff --git a/tox.ini b/tox.ini
index bb6db7585..fcb075dee 100644
--- a/tox.ini
+++ b/tox.ini
@@ -6,11 +6,17 @@
 [tox]
 skipsdist = True
 envlist = pep8
+skip_missing_interpreters = True
+
+[testenv]
+deps =
+    -r{toxinidir}/fuelweb_test/requirements-devops-source.txt
+    -r{toxinidir}/fuelweb_test/requirements.txt
+usedevelop = False
 
 [testenv:pep8]
 # TODO: #deps = hacking==0.7
 deps = flake8
-       pep8<=1.5.7
 usedevelop = False
 commands =
     flake8 {posargs:.}
diff --git a/utils/jenkins/system_tests.sh b/utils/jenkins/system_tests.sh
index 9825bf2d9..6e79da075 100755
--- a/utils/jenkins/system_tests.sh
+++ b/utils/jenkins/system_tests.sh
@@ -40,20 +40,14 @@ if you do need to override them.
 -V (dir)    - Path to python virtual environment
 -i (file)   - Full path to ISO file to build or use for tests.
               Made from iso dir and name if not set.
--t (name)   - Name of task this script should perform. Should be one of defined ones.
-              Taken from Jenkins' job's suffix if not set.
 -o (str)    - Allows you any extra command line option to run test job if you
               want to use some parameters.
 -a (str)    - Allows you to path NOSE_ATTR to the test job if you want
               to use some parameters.
 -A (str)    - Allows you to path  NOSE_EVAL_ATTR if you want to enter attributes
               as python expressions.
--m (name)   - Use this mirror to build ISO from.
-              Uses 'srt' if not set.
 -U          - ISO URL for tests.
               Null by default.
--r (yes/no) - Should built ISO file be places with build number tag and
-              symlinked to the last build or just copied over the last file.
 -b (num)    - Allows you to override Jenkins' build number if you need to.
 -l (dir)    - Path to logs directory. Can be set by LOGS_DIR environment variable.
               Uses WORKSPACE/logs if not set.
@@ -63,6 +57,9 @@ if you do need to override them.
               Useful for debugging.
 -k          - Keep previously created test environment before tests run
 -K          - Keep test environment after tests are finished
+-R (name)   - Name of the package where requirements.txt is located. For use with the option -N only.
+              Uses 'fuelweb_test' if option is not set.
+-N          - Install PyPi packages from 'requirements.txt'.
 -h          - Show this help page
 
 Most variables uses guessing from Jenkins' job name but can be overridden
@@ -115,29 +112,23 @@ GlobalVariables() {
     ISO_PATH="${ISO_DIR}/${ISO_NAME}"
   fi
 
-  # what task should be ran
-  # it's taken from jenkins job name suffix if not set by options
-  if [ -z "${TASK_NAME}" ]; then
-    TASK_NAME="${JOB_NAME##*.}"
-  fi
-
-  # do we want to keep iso's for each build or just copy over single file
-  ROTATE_ISO="${ROTATE_ISO:=yes}"
-
-  # choose mirror to build iso from. Default is 'srt' for Saratov's mirror
-  # you can change mirror by exporting USE_MIRROR variable before running this script
-  USE_MIRROR="${USE_MIRROR:=srt}"
-
   # only show what commands would be executed but do nothing
   # this feature is useful if you want to debug this script's behaviour
   DRY_RUN="${DRY_RUN:=no}"
 
   VENV="${VENV:=yes}"
+
+  # Path to the directory where requirements.txt is placed.
+  # Default place is ./fuelweb_test/requirements.txt
+  REQUIREMENTS_DIR="${REQUIREMENTS_DIR:=fuelweb_test}"
+
+  # Perform requirements update from the requirements.txt file. Default = no.
+  UPDATE_REQUIREMENTS="${UPDATE_REQUIREMENTS:=no}"
 }
 
 GetoptsVariables() {
-  while getopts ":w:j:i:t:o:a:A:m:U:r:b:V:l:LdkKe:v:h" opt; do
-    case $opt in
+  while getopts ":w:j:i:t:o:a:A:m:U:r:b:V:l:LdkKNe:v:R:h" opt; do
+    case ${opt} in
       w)
         WORKSPACE="${OPTARG}"
         ;;
@@ -148,7 +139,7 @@ GetoptsVariables() {
         ISO_PATH="${OPTARG}"
         ;;
       t)
-        TASK_NAME="${OPTARG}"
+        echo "Option 'TASK_NAME' deprecated."
         ;;
       o)
         TEST_OPTIONS="${TEST_OPTIONS} ${OPTARG}"
@@ -160,13 +151,13 @@ GetoptsVariables() {
         NOSE_EVAL_ATTR="${OPTARG}"
         ;;
       m)
-        USE_MIRROR="${OPTARG}"
+        echo "Option 'USE_MIRROR' deprecated."
         ;;
       U)
         ISO_URL="${OPTARG}"
         ;;
       r)
-        ROTATE_ISO="${OPTARG}"
+        echo "Option 'ROTATE_ISO' deprecated."
         ;;
       b)
         BUILD_NUMBER="${OPTARG}"
@@ -195,6 +186,12 @@ GetoptsVariables() {
       v)
         VENV="no"
         ;;
+      R)
+        REQUIREMENTS_DIR="${OPTARG}"
+        ;;
+      N)
+        UPDATE_REQUIREMENTS="yes"
+        ;;
       h)
         ShowHelp
         exit 0
@@ -202,12 +199,12 @@ GetoptsVariables() {
       \?)
         echo "Invalid option: -$OPTARG"
         ShowHelp
-        exit $INVALIDOPTS_ERR
+        exit ${INVALIDOPTS_ERR}
         ;;
       :)
         echo "Option -$OPTARG requires an argument."
         ShowHelp
-        exit $INVALIDOPTS_ERR
+        exit ${INVALIDOPTS_ERR}
         ;;
     esac
   done
@@ -217,121 +214,20 @@ CheckVariables() {
 
   if [ -z "${JOB_NAME}" ]; then
     echo "Error! JOB_NAME is not set!"
-    exit $NOJOBNAME_ERR
+    exit ${NOJOBNAME_ERR}
   fi
 
   if [ -z "${ISO_PATH}" ]; then
     echo "Error! ISO_PATH is not set!"
-    exit $NOISOPATH_ERR
-  fi
-
-  if [ -z "${TASK_NAME}" ]; then
-    echo "Error! TASK_NAME is not set!"
-    exit $NOTASKNAME_ERR
+    exit ${NOISOPATH_ERR}
   fi
 
   if [ -z "${WORKSPACE}" ]; then
     echo "Error! WORKSPACE is not set!"
-    exit $NOWORKSPACE_ERR
+    exit ${NOWORKSPACE_ERR}
   fi
 }
 
-MakeISO() {
-  # Create iso file to be used in tests
-
-  # clean previous garbage
-  if [ "${DRY_RUN}" = "yes" ]; then
-    echo make deep_clean
-  else
-    make deep_clean
-  fi
-  ec="${?}"
-
-  if [ "${ec}" -gt "0" ]; then
-    echo "Error! Deep clean failed!"
-    exit $DEEPCLEAN_ERR
-  fi
-
-  # create ISO file
-  export USE_MIRROR
-  if [ "${DRY_RUN}" = "yes" ]; then
-    echo make iso
-  else
-    make iso
-  fi
-  ec=$?
-
-  if [ "${ec}" -gt "0" ]; then
-    echo "Error making ISO!"
-    exit $MAKEISO_ERR
-  fi
-
-  if [ "${DRY_RUN}" = "yes" ]; then
-    ISO="${WORKSPACE}/build/iso/fuel.iso"
-  else
-    ISO="`ls ${WORKSPACE}/build/iso/*.iso | head -n 1`"
-    # check that ISO file exists
-    if [ ! -f "${ISO}" ]; then
-      echo "Error! ISO file not found!"
-      exit $NOISOFOUND_ERR
-    fi
-  fi
-
-  # copy ISO file to storage dir
-  # if rotation is enabled and build number is available
-  # save iso to tagged file and symlink to the last build
-  # if rotation is not enabled just copy iso to iso_dir
-
-  if [ "${ROTATE_ISO}" = "yes" -a "${BUILD_NUMBER}" != "" ]; then
-    # copy iso file to shared dir with revision tagged name
-    NEW_BUILD_ISO_PATH="${ISO_PATH#.iso}_${BUILD_NUMBER}.iso"
-    if [ "${DRY_RUN}" = "yes" ]; then
-      echo cp "${ISO}" "${NEW_BUILD_ISO_PATH}"
-    else
-      cp "${ISO}" "${NEW_BUILD_ISO_PATH}"
-    fi
-    ec=$?
-
-    if [ "${ec}" -gt "0" ]; then
-      echo "Error! Copy ${ISO} to ${NEW_BUILD_ISO_PATH} failed!"
-      exit $COPYISO_ERR
-    fi
-
-    # create symlink to the last built ISO file
-    if [ "${DRY_RUN}" = "yes" ]; then
-      echo ln -sf "${NEW_BUILD_ISO_PATH}" "${ISO_PATH}"
-    else
-      ln -sf "${NEW_BUILD_ISO_PATH}" "${ISO_PATH}"
-    fi
-    ec=$?
-
-    if [ "${ec}" -gt "0" ]; then
-      echo "Error! Create symlink from ${NEW_BUILD_ISO_PATH} to ${ISO_PATH} failed!"
-      exit $SYMLINKISO_ERR
-    fi
-  else
-    # just copy file to shared dir
-    if [ "${DRY_RUN}" = "yes" ]; then
-      echo cp "${ISO}" "${ISO_PATH}"
-    else
-      cp "${ISO}" "${ISO_PATH}"
-    fi
-    ec=$?
-
-    if [ "${ec}" -gt "0" ]; then
-      echo "Error! Copy ${ISO} to ${ISO_PATH} failed!"
-      exit $COPYISO_ERR
-    fi
-  fi
-
-  if [ "${ec}" -gt "0" ]; then
-    echo "Error! Copy ISO from ${ISO} to ${ISO_PATH} failed!"
-    exit $COPYISO_ERR
-  fi
-  echo "Finished building ISO: ${ISO_PATH}"
-  exit 0
-}
-
 CdWorkSpace() {
     # chdir into workspace or fail if could not
     if [ "${DRY_RUN}" != "yes" ]; then
@@ -340,13 +236,47 @@ CdWorkSpace() {
 
         if [ "${ec}" -gt "0" ]; then
             echo "Error! Cannot cd to WORKSPACE!"
-            exit $CDWORKSPACE_ERR
+            exit ${CDWORKSPACE_ERR}
         fi
     else
         echo cd "${WORKSPACE}"
     fi
 }
 
+CheckRequirements() {
+    REQUIREMENTS_PATH="${WORKSPACE}/${REQUIREMENTS_DIR}"
+
+    if [ "${UPDATE_REQUIREMENTS}" = "yes" ]; then
+        if [ -f "${REQUIREMENTS_PATH}/requirements.txt" ]; then
+            # Install packages from requirements.txt
+            pip install -r "${REQUIREMENTS_PATH}/requirements.txt"
+        fi
+
+        if [ -f "${REQUIREMENTS_PATH}/requirements-devops.txt" ]; then
+            # Try to install fuel-devops as a package, to controll that
+            # required version of fuel-devops is already installed.
+            # Installation will fail if fuel-devops is not installed or
+            # installed with correct version (until it is not a PyPi package)
+            pip install -r "${REQUIREMENTS_PATH}/requirements-devops.txt"
+        fi
+    fi
+}
+
+ActivateVirtualenv() {
+    if [ -z "${VENV_PATH}" ]; then
+        VENV_PATH="/home/jenkins/venv-nailgun-tests"
+    fi
+
+    # run python virtualenv
+    if [ "${VENV}" = "yes" ]; then
+        if [ "${DRY_RUN}" = "yes" ]; then
+            echo . ${VENV_PATH}/bin/activate
+        else
+            . ${VENV_PATH}/bin/activate
+        fi
+    fi
+}
+
 RunTest() {
     # Run test selected by task name
 
@@ -354,7 +284,7 @@ RunTest() {
     if [ ! -f "${ISO_PATH}" ]; then
         if [ -z "${ISO_URL}" -a "${DRY_RUN}" != "yes" ]; then
             echo "Error! File ${ISO_PATH} not found and no ISO_URL (-U key) for downloading!"
-            exit $NOISOFOUND_ERR
+            exit ${NOISOFOUND_ERR}
         else
             if [ "${DRY_RUN}" = "yes" ]; then
                 echo wget -c ${ISO_URL} -O ${ISO_PATH}
@@ -362,27 +292,14 @@ RunTest() {
                 echo "No ${ISO_PATH} found. Trying to download file."
                 wget -c ${ISO_URL} -O ${ISO_PATH}
                 rc=$?
-                if [ $rc -ne 0 ]; then
+                if [ ${rc} -ne 0 ]; then
                     echo "Failed to fetch ISO from ${ISO_URL}"
-                    exit $ISODOWNLOAD_ERR
+                    exit ${ISODOWNLOAD_ERR}
                 fi
             fi
         fi
     fi
 
-    if [ -z "${VENV_PATH}" ]; then
-        VENV_PATH="/home/jenkins/venv-nailgun-tests"
-    fi
-
-    # run python virtualenv
-    if [ "${VENV}" = "yes" ]; then
-        if [ "${DRY_RUN}" = "yes" ]; then
-            echo . $VENV_PATH/bin/activate
-        else
-            . $VENV_PATH/bin/activate
-        fi
-    fi
-
     if [ "${ENV_NAME}" = "" ]; then
       ENV_NAME="${JOB_NAME}_system_test"
     fi
@@ -392,7 +309,7 @@ RunTest() {
     fi
 
     if [ ! -f "$LOGS_DIR" ]; then
-      mkdir -p $LOGS_DIR
+      mkdir -p ${LOGS_DIR}
     fi
 
     export ENV_NAME
@@ -425,18 +342,18 @@ RunTest() {
     # run python test set to create environments, deploy and test product
     if [ "${DRY_RUN}" = "yes" ]; then
         echo export PYTHONPATH="${PYTHONPATH:+${PYTHONPATH}:}${WORKSPACE}"
-        echo python fuelweb_test/run_tests.py -q --nologcapture --with-xunit ${OPTS}
+        echo python run_system_test.py run -q --nologcapture --with-xunit ${OPTS}
     else
         export PYTHONPATH="${PYTHONPATH:+${PYTHONPATH}:}${WORKSPACE}"
         echo ${PYTHONPATH}
-        python fuelweb_test/run_tests.py -q --nologcapture --with-xunit ${OPTS}
+        python run_system_test.py run -q --nologcapture --with-xunit ${OPTS}
 
     fi
     ec=$?
 
     # Extract logs using fuel_logs utility
     if [ "${FUELLOGS_TOOL}" != "no" ]; then
-      for logfile in $(find "${LOGS_DIR}" -name "fail*.tar.xz" -type f);
+      for logfile in $(find "${LOGS_DIR}" -name "fail*.tar.[gx]z" -type f);
       do
          ./utils/jenkins/fuel_logs.py "${logfile}" > "${logfile}.filtered.log"
       done
@@ -454,26 +371,6 @@ RunTest() {
     exit "${ec}"
 }
 
-RouteTasks() {
-  # this selector defines task names that are recognised by this script
-  # and runs corresponding jobs for them
-  # running any jobs should exit this script
-
-  case "${TASK_NAME}" in
-  test)
-    RunTest
-    ;;
-  iso)
-    MakeISO
-    ;;
-  *)
-    echo "Unknown task: ${TASK_NAME}!"
-    exit $INVALIDTASK_ERR
-    ;;
-  esac
-  exit 0
-}
-
 # MAIN
 
 # first we want to get variable from command line options
@@ -488,5 +385,11 @@ CheckVariables
 # first we chdir into our working directory unless we dry run
 CdWorkSpace
 
-# finally we can choose what to do according to TASK_NAME
-RouteTasks
+# Activate python virtual environment
+ActivateVirtualenv
+
+# Check/update PyPi requirements
+CheckRequirements
+
+# Run the test
+RunTest