diff --git a/package/network/services/dnsmasq/Makefile b/package/network/services/dnsmasq/Makefile
index d51f23e48b..59a4f45ca7 100644
--- a/package/network/services/dnsmasq/Makefile
+++ b/package/network/services/dnsmasq/Makefile
@@ -8,10 +8,11 @@
 include $(TOPDIR)/rules.mk
 
 PKG_NAME:=dnsmasq
-PKG_VERSION:=2.80
+PKG_UPSTREAM_VERSION:=2.80
+PKG_VERSION:=$(subst test,~~test,$(subst rc,~rc,$(PKG_UPSTREAM_VERSION)))
 PKG_RELEASE:=8
 
-PKG_SOURCE:=$(PKG_NAME)-$(PKG_VERSION).tar.xz
+PKG_SOURCE:=$(PKG_NAME)-$(PKG_UPSTREAM_VERSION).tar.xz
 PKG_SOURCE_URL:=http://thekelleys.org.uk/dnsmasq
 PKG_HASH:=cdaba2785e92665cf090646cba6f94812760b9d7d8c8d0cfb07ac819377a63bb
 
@@ -19,7 +20,7 @@ PKG_LICENSE:=GPL-2.0
 PKG_LICENSE_FILES:=COPYING
 PKG_CPE_ID:=cpe:/a:thekelleys:dnsmasq
 
-PKG_BUILD_DIR:=$(BUILD_DIR)/$(PKG_NAME)-$(BUILD_VARIANT)/$(PKG_NAME)-$(PKG_VERSION)
+PKG_BUILD_DIR:=$(BUILD_DIR)/$(PKG_NAME)-$(BUILD_VARIANT)/$(PKG_NAME)-$(PKG_UPSTREAM_VERSION)
 
 PKG_INSTALL:=1
 PKG_BUILD_PARALLEL:=1