diff --git a/allow-only-direct-compilation.patch b/allow-only-direct-compilation.patch
new file mode 100644
index 0000000..39b5abc
--- /dev/null
+++ b/allow-only-direct-compilation.patch
@@ -0,0 +1,33 @@
+Index: setuptools-69.0.2/setuptools/_distutils/command/install_lib.py
+===================================================================
+--- setuptools-69.0.2.orig/setuptools/_distutils/command/install_lib.py
++++ setuptools-69.0.2/setuptools/_distutils/command/install_lib.py
+@@ -133,6 +133,12 @@ class install_lib(Command):
+         # should at least generate usable bytecode in RPM distributions.
+         install_root = self.get_finalized_command('install').root
+ 
++        # UGLY HACK WARNING. Indirect compilation requires distutils, which
++        # means Python 3.11 or less. If and only if an environment variable
++        # is set, do we force direct compilation.
++        # See also https://github.com/pypa/setuptools/issues/4164
++        direct = os.environ.get('SETUPTOOLS_FORCE_DIRECT', None)
++
+         if self.compile:
+             byte_compile(
+                 files,
+@@ -140,6 +146,7 @@ class install_lib(Command):
+                 force=self.force,
+                 prefix=install_root,
+                 dry_run=self.dry_run,
++                direct=direct,
+             )
+         if self.optimize > 0:
+             byte_compile(
+@@ -149,6 +156,7 @@ class install_lib(Command):
+                 prefix=install_root,
+                 verbose=self.verbose,
+                 dry_run=self.dry_run,
++                direct=direct,
+             )
+ 
+     # -- Utility methods -----------------------------------------------
diff --git a/python-setuptools.changes b/python-setuptools.changes
index 11fb5f1..a55899a 100644
--- a/python-setuptools.changes
+++ b/python-setuptools.changes
@@ -1,3 +1,9 @@
+-------------------------------------------------------------------
+Fri Dec 22 04:10:44 UTC 2023 - Steve Kowalik <steven.kowalik@suse.com>
+
+- Add patch allow-only-direct-compilation.patch:
+  * Allow forcing direct compilation.
+
 -------------------------------------------------------------------
 Mon Dec 18 08:01:21 UTC 2023 - Dirk Müller <dmueller@suse.com>
 
diff --git a/python-setuptools.spec b/python-setuptools.spec
index e5eacaf..e2fdf0f 100644
--- a/python-setuptools.spec
+++ b/python-setuptools.spec
@@ -47,6 +47,8 @@ Source:         https://files.pythonhosted.org/packages/source/s/setuptools/setu
 Patch0:         sort-for-reproducibility.patch
 # PATCH-FIX-OPENSUSE fix-get-python-lib-python38.patch bsc#1204395
 Patch2:         fix-get-python-lib-python38.patch
+# PATCH-FIX-OPENSUSE Allow forcing direct compilation, see gh#pypa/setuptools#4164
+Patch3:         allow-only-direct-compilation.patch
 BuildRequires:  %{python_module base >= 3.7}
 BuildRequires:  fdupes
 BuildRequires:  python-rpm-macros
@@ -103,8 +105,7 @@ rm -f setuptools/*.exe
 
 %install
 %if !%{with test} && !%{with wheel}
-# workaround python 3.12 distutils import
-export PYTHONDONTWRITEBYTECODE=1
+export SETUPTOOLS_FORCE_DIRECT=True
 %python_install
 %python_expand %fdupes %{buildroot}%{$python_sitelib}
 %endif