diff --git a/NEWS b/NEWS
index 109898ca..2eb1e20d 100644
--- a/NEWS
+++ b/NEWS
@@ -1,6 +1,9 @@
 xbps-0.36 (???):
 
- * xbps-checkvers: new utility merged from https://github.com/xdave/xbps-src-utils
+ * xbps-create(8): new option --compression to specify a compression format;
+   defaults to xz.
+
+ * xbps-checkvers(8): new utility merged from https://github.com/xdave/xbps-src-utils
    that is able to check which packages are outdated in the XBPS repositories or
    a rootdir by comparing them against a xbps-packages repository.
    Written by xdave and improved by myself.
diff --git a/bin/xbps-create/main.c b/bin/xbps-create/main.c
index 6223f1c2..0a228f82 100644
--- a/bin/xbps-create/main.c
+++ b/bin/xbps-create/main.c
@@ -1,5 +1,5 @@
 /*-
- * Copyright (c) 2012-2013 Juan Romero Pardines.
+ * Copyright (c) 2012-2014 Juan Romero Pardines.
  * All rights reserved.
  *
  * Redistribution and use in source and binary forms, with or without
@@ -98,6 +98,7 @@ usage(void)
 	" -s --desc           Short description (max 80 characters).\n"
 	" -V --version        Prints XBPS release version.\n"
 	" --build-options     A string with the used build options.\n"
+	" --compression       Compression format: gzip, bzip2, xz (default).\n"
 	" --shlib-provides    List of provided shared libraries (blank separated list,\n"
 	"                     e.g 'libfoo.so.1 libblah.so.2').\n"
 	" --shlib-requires    List of required shared libraries (blank separated list,\n"
@@ -563,6 +564,7 @@ main(int argc, char **argv)
 		{ "shlib-provides", required_argument, NULL, '0' },
 		{ "shlib-requires", required_argument, NULL, '1' },
 		{ "build-options", required_argument, NULL, '2' },
+		{ "compression", required_argument, NULL, '3' },
 		{ NULL, 0, NULL, 0 }
 	};
 	struct archive *ar;
@@ -573,13 +575,13 @@ main(int argc, char **argv)
 	const char *provides, *pkgver, *replaces, *desc, *ldesc;
 	const char *arch, *config_files, *mutable_files, *version;
 	const char *buildopts, *shlib_provides, *shlib_requires;
-	const char *srcrevs = NULL;
+	const char *compression, *srcrevs = NULL;
 	char *pkgname, *binpkg, *tname, *p, cwd[PATH_MAX-1];
 	bool quiet = false, preserve = false;
 	int c, pkg_fd;
 	mode_t myumask;
 
-	arch = conflicts = deps = homepage = license = maint = NULL;
+	arch = conflicts = deps = homepage = license = maint = compression = NULL;
 	provides = pkgver = replaces = desc = ldesc = bwith = buildopts = NULL;
 	config_files = mutable_files = shlib_provides = shlib_requires = NULL;
 
@@ -654,6 +656,9 @@ main(int argc, char **argv)
 		case '2':
 			buildopts = optarg;
 			break;
+		case '3':
+			compression = optarg;
+			break;
 		case '?':
 		default:
 			usage();
@@ -763,7 +768,18 @@ main(int argc, char **argv)
 	 */
 	ar = archive_write_new();
 	assert(ar);
-	archive_write_add_filter_xz(ar);
+	/*
+	 * Set compression format, xz if unset.
+	 */
+	if (compression == NULL || strcmp(compression, "xz") == 0)
+		archive_write_add_filter_xz(ar);
+	else if (strcmp(compression, "gzip") == 0)
+		archive_write_add_filter_gzip(ar);
+	else if (strcmp(compression, "bzip2") == 0)
+		archive_write_add_filter_bzip2(ar);
+	else
+		die("unknown compression format %s");
+
 	archive_write_set_format_pax_restricted(ar);
 	if ((resolver = archive_entry_linkresolver_new()) == NULL)
 		die("cannot create link resolver");
diff --git a/bin/xbps-create/xbps-create.8 b/bin/xbps-create/xbps-create.8
index 76094cb0..62ccc224 100644
--- a/bin/xbps-create/xbps-create.8
+++ b/bin/xbps-create/xbps-create.8
@@ -1,4 +1,4 @@
-.Dd April 7, 2014
+.Dd April 11, 2014
 .Os Void Linux
 .Dt xbps-create 8
 .Sh NAME
@@ -68,6 +68,9 @@ A short description for this package, one line with less than 80 characters.
 Shows the XBPS version.
 .It Fl -build-options Ar string
 A string containing the build options used in package.
+.It Fl -compression Ar gzip | bzip2 | xz
+Set the binary package compression format. If unset, defaults to
+.Ar xz .
 .It Fl -shlib-provides Ar list
 A list of provided shared libraries, separated by a single blank. Example:
 .Ar 'libfoo.so.2 libblah.so.1' .