diff --git a/osc/build.py b/osc/build.py
index 73b3c287..8e09ccff 100644
--- a/osc/build.py
+++ b/osc/build.py
@@ -683,16 +683,29 @@ def main(opts, argv):
 
     vm_options = ''
     if config['build-device'] and config['build-memory'] and config['build-type']:
+        my_build_device = config['build-device'] % { 'repo': repo, 'arch': arch,
+                                                     'project' : prj, 'package' : pacname
+                                                   }
         if config['build-type'] == 'kvm':
-            vm_options = '--kvm ' + config['build-device']
+            vm_options = '--kvm ' + my_build_device
         elif config['build-type'] == 'xen':
-            vm_options = '--xen ' + config['build-device']
+            vm_options = '--xen ' + my_build_device
         else:
             raise oscerr.WrongArgs('ERROR: unknown VM is set ! ("%s")' % config['build-type'])
         if config['build-swap']:
-            vm_options += ' --swap ' + config['build-swap']
+            my_build_swap = config['build-swap'] % { 'repo': repo, 'arch': arch,
+                                                     'project' : prj, 'package' : pacname
+                                                   }
+            vm_options += ' --swap ' + my_build_swap
         if config['build-memory']:
             vm_options += ' --memory ' + config['build-memory']
+        if config['build-vmdisk-autosetup'] and config['build-vmdisk-autosetup'] == '1':
+                if config['build-vmdisk-rootsize'] and config['build-vmdisk-swapsize']:
+                        vm_options += ' --vmdisk-autosetup '
+                        vm_options += ' --vmdisk-rootsize ' + config['build-vmdisk-rootsize']
+                        vm_options += ' --vmdisk-swapsize ' + config['build-vmdisk-swapsize']
+                        if config['build-vmdisk-force']:
+                                vm_options += ' --vmdisk-force '
 
     print 'Running build'
     cmd = '"%s" --root="%s" --rpmlist="%s" --dist="%s" %s --arch=%s %s "%s" %s' \
diff --git a/osc/conf.py b/osc/conf.py
index e449c6da..39541e99 100644
--- a/osc/conf.py
+++ b/osc/conf.py
@@ -75,6 +75,11 @@ DEFAULTS = { 'apiurl': 'https://api.opensuse.org',
              'build-device': '', # required for VM builds
              'build-memory': '',# required for VM builds
              'build-swap': '',  # optional for VM builds
+             'build-vmdisk-autosetup': '', # optional for VM builds
+             'build-vmdisk-rootsize': '', # optional for VM builds
+             'build-vmdisk-swapsize': '', # optional for VM builds
+             'build-vmdisk-force': '', # optional for VM builds
+
              'build-jobs': os.sysconf('SC_NPROCESSORS_ONLN'), # compile with N jobs
              'icecream': '0',
 
@@ -154,6 +159,45 @@ apiurl = %(apiurl)s
 # compile with N jobs (default: "getconf _NPROCESSORS_ONLN")
 #build-jobs = N
 
+# build-type to use - values can be (depending on the capabilities of the 'build' script)
+# empty    -  chroot build
+# kvm      -  kvm VM build  (needs build-device, build-swap, build-memory)
+# xen      -  xen VM build  (needs build-device, build-swap, build-memory)
+#   experimental:
+#     qemu -  qemu VM build
+#     lxc  -  lxc build
+#build-type =
+
+# build-device is the disk-image file to use as root for VM builds
+# e.g. /var/tmp/FILE.root
+# if no build-vmdisk-autosetup is used, the file must be present/created
+#build-device = /var/tmp/FILE.root
+
+# build-swap is the disk-image to use as swap for VM builds
+# if no build-vmdisk-autosetup is used, the file must be present/created
+# e.g. /var/tmp/FILE.swap
+#build-swap = /var/tmp/FILE.swap
+
+# build-memory is the amount of memory used in the VM
+# value in MB - e.g. 512
+#build-memory = 512
+
+# build-vmdisk-autosetup enabled the automatic creation of VM build disks
+# possible values: 0 / 1
+build-vmdisk-autosetup = 0
+
+# build-vmdisk-rootsize is the size of the disk-image used as root in a VM build
+# values in MB - e.g. 4096
+#build-vmdisk-rootsize = 4096
+
+# build-vmdisk-swapsize is the size of the disk-image used as swap in a VM build
+# values in MB - e.g. 1024
+#build-vmdisk-swapsize = 1024
+
+# build-vmdisk-force can be set to 1 to force the (re-)setup of the VM disk images
+# possible values: 0 / 1
+#build-vmdisk-force = 0
+
 # Numeric uid:gid to assign to the "abuild" user in the build-root
 # or "caller" to use the current users uid:gid
 # This is convenient when sharing the buildroot with ordinary userids