diff --git a/manager/.gitignore b/manager/.gitignore
index f5883086e1c698f0583859bf660ad63fad3335a0..4652def84bdae96f3ca3289f06b9db636ac30a34 100644
--- a/manager/.gitignore
+++ b/manager/.gitignore
@@ -15,3 +15,4 @@ docs/_build/*
 *junit.xml
 .build_kresd/
 .install_kresd/
+build/
\ No newline at end of file
diff --git a/manager/build.py b/manager/build.py
new file mode 100644
index 0000000000000000000000000000000000000000..5406433b37933d6a77e9237636a109f690b18ece
--- /dev/null
+++ b/manager/build.py
@@ -0,0 +1,16 @@
+from typing import Any, Dict
+
+from setuptools import Extension
+
+
+def build(setup_kwargs: Dict[Any, Any]) -> None:
+    setup_kwargs.update(
+        {
+            "ext_modules": [
+                Extension(
+                    name="knot_resolver_manager.kresd_controller.supervisord.plugin.notify",
+                    sources=["knot_resolver_manager/kresd_controller/supervisord/plugin/notifymodule.c"],
+                ),
+            ]
+        }
+    )
diff --git a/manager/knot_resolver_manager/kresd_controller/supervisord/plugin/Makefile b/manager/knot_resolver_manager/kresd_controller/supervisord/plugin/Makefile
deleted file mode 100644
index dcc66dabd6fe2b0723d1e3870aee5dcc39d67138..0000000000000000000000000000000000000000
--- a/manager/knot_resolver_manager/kresd_controller/supervisord/plugin/Makefile
+++ /dev/null
@@ -1,11 +0,0 @@
-# !!! Do not use this in production !!!!!
-# This makefile is a hack to simplify initial development
-#
-# Use variant of this instead:
-# https://docs.python.org/3/extending/building.html#building
-
-notify.so: notify.o
-	gcc -shared notify.o -L/usr/local/lib -o notify.so
-
-notify.o: notifymodule.c
-	gcc -DNDEBUG -g -O3 -Wall -Wstrict-prototypes -fPIC -I/usr/local/include -I/usr/include/python3.10 -c notifymodule.c -o notify.o
\ No newline at end of file
diff --git a/manager/pyproject.toml b/manager/pyproject.toml
index 0f9d1454e3332117d862404d2650ddcf7dfb2ce7..9f646c041bf80c85c3cff7e4b3fa8ffe2a87fc47 100644
--- a/manager/pyproject.toml
+++ b/manager/pyproject.toml
@@ -7,6 +7,12 @@ authors = [
     "Aleš Mrázek <ales.mrazek@nic.cz>"
 ]
 
+# See currently open issue about building C extensions here:
+# https://github.com/python-poetry/poetry/issues/2740
+[tool.poetry.build]
+script = "build.py"
+generate-setup-file = true
+
 [tool.poetry.dependencies]
 python = "^3.6.8"
 aiohttp = "^3.6.12"
@@ -50,7 +56,7 @@ run-debug = { cmd = "scripts/run-debug", help = "Run the manager under debugger"
 docs = { cmd = "scripts/docs", help = "Create HTML documentation" }
 test = { shell = "env PYTHONPATH=. pytest --junitxml=unit.junit.xml --cov=knot_resolver_manager --show-capture=all tests/unit/", help = "Run tests" }
 check = { cmd = "scripts/codecheck", help = "Run static code analysis" }
-format = { shell = "black knot_resolver_manager/ tests/ scripts/; isort .", help = "Run code formatter" }
+format = { shell = "black knot_resolver_manager/ tests/ scripts/ build.py; isort .", help = "Run code formatter" }
 fixdeps = { shell = "poetry install; npm install; npm update", help = "Install/update dependencies according to configuration files"}
 commit = { shell = "scripts/commit", help = "Invoke every single check before commiting" }
 container = { cmd = "scripts/container.py", help = "Manage containers" }
@@ -73,6 +79,9 @@ configure-vscode = {cmd = "scripts/configure-vscode", help = "Create VSCode conf
 line-length = 120
 target_version = ['py38']
 include = '\.py$'
+exclude = '''
+^/setup.py  # Poetry generates it and we want to keep it unchanged
+'''
 
 [tool.isort]
 line_length=120                # corresponds to -w  flag
@@ -80,6 +89,10 @@ multi_line_output=3            # corresponds to -m  flag
 include_trailing_comma=true    # corresponds to -tc flag
 skip_glob = '^((?!py$).)*$'    # isort all Python files
 float_to_top=true
+profile = "black"
+skip = [
+    "setup.py",  # Poetry generates it and we want to keep it unchanged
+]
 
 [tool.tox]
 legacy_tox_ini = """
diff --git a/manager/scripts/run b/manager/scripts/run
index 59857de9885c3829be9959cc911711ae521cb8bb..d44eb968cedd804422b6779b7644e99a11a275ee 100755
--- a/manager/scripts/run
+++ b/manager/scripts/run
@@ -18,6 +18,22 @@ ninja install -C manager/.build_kresd
 export PATH="$(realpath manager/.install_kresd)/sbin:$PATH"
 cd manager
 
+echo
+echo Building Knot Resolver Manager native extensions
+echo ------------------------------------------------
+poetry build
+# copy native modules from build directory to source directory
+shopt -s globstar
+shopt -s nullglob
+for d in build/lib*; do
+    for f in "$d/"**/*.so; do
+        cp -v "$f" ${f#"$d/"}
+    done
+done
+shopt -u globstar
+shopt -u nullglob
+
+
 echo
 echo Knot Manager API is accessible on http://localhost:5000
 echo -------------------------------------------------------
diff --git a/manager/setup.py b/manager/setup.py
index cc67ae585f28d98da866d0dcfab3b7941ee21f22..ca4bac74b0a980a3f8cd05da28f2352a9fdbbe04 100644
--- a/manager/setup.py
+++ b/manager/setup.py
@@ -43,7 +43,8 @@ setup_kwargs = {
     'install_requires': install_requires,
     'python_requires': '>=3.6.8,<4.0.0',
 }
-
+from build import *
+build(setup_kwargs)
 
 setup(**setup_kwargs)