diff --git a/target/share/squashfs/build.sh b/target/share/squashfs/build.sh
index d5b21b9..7cb1d55 100644
--- a/target/share/squashfs/build.sh
+++ b/target/share/squashfs/build.sh
@@ -139,6 +139,6 @@ done
 echo_status "Expanded size: $( du -sh "$rootfs" | cut -f1)."
 
 echo_status "Creating ${rootfs#$base/}.sqx ..."
-( mksquashfs $rootfs $image -comp gzip )
+( mksquashfs $rootfs $image -comp $SDECFG_IMAGE_SQUASHFS_COMP )
 
 echo_status "Image size: $( du -sh "$rootfs.sqx" | cut -f1)."
diff --git a/target/share/squashfs/config.in b/target/share/squashfs/config.in
new file mode 100644
index 0000000..5da04ff
--- /dev/null
+++ b/target/share/squashfs/config.in
@@ -0,0 +1,31 @@
+# --- SDE-COPYRIGHT-NOTE-BEGIN ---
+# This copyright note is auto-generated by ./scripts/Create-CopyPatch.
+#
+# Filename: target/share/squashfs/config.in
+# Copyright (C) 2011 The OpenSDE Project
+#
+# More information can be found in the files COPYING and README.
+#
+# This program is free software; you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation; version 2 of the License. A copy of the
+# GNU General Public License can be found in the file COPYING.
+# --- SDE-COPYRIGHT-NOTE-END ---
+
+complist=
+compdefault=
+
+# generate a list of available compressors and choose the default
+for compressor in gzip lzo xz; do
+	if pkgcheck "$compressor" X ; then
+		var_append complist ' ' "$compressor Create_${compressor}_compressed_SquashFS"
+		compdefault="$compressor"
+	fi
+done
+
+if [ ! -z "$complist" ]; then
+	choice SDECFG_IMAGE_SQUASHFS_COMP $compdefault $complist
+fi
+
+unset complist
+unset compdefault