diff --git a/.gitignore b/.gitignore
index 932206a..411d341 100644
--- a/.gitignore
+++ b/.gitignore
@@ -88,3 +88,4 @@
 /setuptools-37.0.0.zip
 /setuptools-38.2.5.zip
 /setuptools-38.4.0.zip
+/setuptools-39.0.1.zip
diff --git a/python-setuptools.spec b/python-setuptools.spec
index 2831db7..4e476ff 100644
--- a/python-setuptools.spec
+++ b/python-setuptools.spec
@@ -30,8 +30,8 @@
 %endif
 
 Name:           python-setuptools
-Version:        38.4.0
-Release:        4%{?dist}
+Version:        39.0.1
+Release:        1%{?dist}
 Summary:        Easily build and distribute Python packages
 
 Group:          Applications/System
@@ -252,6 +252,9 @@ PYTHONDONTWRITEBYTECODE=1 PYTHONPATH=$(pwd) py.test-%{python3_version} --ignore=
 
 
 %changelog
+* Tue Mar 20 2018 Charalampos Stratakis <cstratak@redhat.com> - 39.0.1-1
+- update to 39.0.1 Fixes bug #1531527
+
 * Wed Mar 14 2018 Tomas Orsava <torsava@redhat.com> - 38.4.0-4
 - Skip test_virtualenv due to broken executable detection
 
diff --git a/sources b/sources
index f0e42d3..2c9595f 100644
--- a/sources
+++ b/sources
@@ -1 +1 @@
-SHA512 (setuptools-38.4.0.zip) = ed419f19a449bf690864cccc5ca747344d932fcbdff5fe8b3cd810df890a18a675f98be2bd377ab7d20c2a9456628f4fcf53f046495751fdfc51fd459e669601
+SHA512 (setuptools-39.0.1.zip) = 1f8a579b18944146ccf34c8daccdecd3595591c94fe8d43a329aca8188100b97049d0a4f5083c5c7c616b260eb379153929a2a1ed7225df88de17414d394fed1