diff --git a/Makefile b/Makefile
index 0f82e71..a00195c 100644
--- a/Makefile
+++ b/Makefile
@@ -227,6 +227,7 @@
 LIBS += drivers/mtd/onenand/libonenand.a
 LIBS += drivers/mtd/spi/libspi_flash.a
 LIBS += drivers/net/libnet.a
+LIBS += drivers/net/phy/libphy.a
 LIBS += drivers/net/sk98lin/libsk98lin.a
 LIBS += drivers/pci/libpci.a
 LIBS += drivers/pcmcia/libpcmcia.a
diff --git a/common/Makefile b/common/Makefile
index 3e4829f..ff2e6c6 100644
--- a/common/Makefile
+++ b/common/Makefile
@@ -133,7 +133,6 @@
 COBJS-y += lists.o
 COBJS-$(CONFIG_LYNXKDI) += lynxkdi.o
 COBJS-y += memsize.o
-COBJS-$(CONFIG_BITBANGMII) += miiphybb.o
 COBJS-y += miiphyutil.o
 COBJS-y += s_record.o
 COBJS-y += serial.o
diff --git a/drivers/net/phy/Makefile b/drivers/net/phy/Makefile
new file mode 100644
index 0000000..10dc082
--- /dev/null
+++ b/drivers/net/phy/Makefile
@@ -0,0 +1,46 @@
+#
+# (C) Copyright 2006
+# Wolfgang Denk, DENX Software Engineering, wd@denx.de.
+#
+# See file CREDITS for list of people who contributed to this
+# project.
+#
+# 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; either version 2 of
+# the License, or (at your option) any later version.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.	See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program; if not, write to the Free Software
+# Foundation, Inc., 59 Temple Place, Suite 330, Boston,
+# MA 02111-1307 USA
+#
+
+include $(TOPDIR)/config.mk
+
+LIB	:= $(obj)libphy.a
+
+COBJS-$(CONFIG_BITBANGMII) += miiphybb.o
+
+COBJS	:= $(COBJS-y)
+SRCS	:= $(COBJS:.o=.c)
+OBJS	:= $(addprefix $(obj),$(COBJS))
+
+all:	$(LIB)
+
+$(LIB):	$(obj).depend $(OBJS)
+	$(AR) $(ARFLAGS) $@ $(OBJS)
+
+#########################################################################
+
+# defines $(obj).depend target
+include $(SRCTREE)/rules.mk
+
+sinclude $(obj).depend
+
+#########################################################################
diff --git a/common/miiphybb.c b/drivers/net/phy/miiphybb.c
similarity index 100%
rename from common/miiphybb.c
rename to drivers/net/phy/miiphybb.c