diff --git a/.gitignore b/.gitignore
index 160bebf..932206a 100644
--- a/.gitignore
+++ b/.gitignore
@@ -87,3 +87,4 @@
 /setuptools-36.5.0.zip
 /setuptools-37.0.0.zip
 /setuptools-38.2.5.zip
+/setuptools-38.4.0.zip
diff --git a/python-setuptools.spec b/python-setuptools.spec
index 8f85f3b..e463af9 100644
--- a/python-setuptools.spec
+++ b/python-setuptools.spec
@@ -29,7 +29,7 @@
 %endif
 
 Name:           python-setuptools
-Version:        38.2.5
+Version:        38.4.0
 Release:        1%{?dist}
 Summary:        Easily build and distribute Python packages
 
@@ -247,6 +247,9 @@ PYTHONDONTWRITEBYTECODE=1 PYTHONPATH=$(pwd) py.test-%{python3_version}
 
 
 %changelog
+* Tue Jan 16 2018 Charalampos Stratakis <cstratak@redhat.com> - 38.4.0-1
+- update to 38.4.0 Fixes bug #1531527
+
 * Tue Jan 02 2018 Charalampos Stratakis <cstratak@redhat.com> - 38.2.5-1
 - update to 38.2.5 Fixes bug #1528968
 
diff --git a/sources b/sources
index 5d43d55..f0e42d3 100644
--- a/sources
+++ b/sources
@@ -1 +1 @@
-SHA512 (setuptools-38.2.5.zip) = a2a1ab560552e53efae5e7aca32fd0ff3c2d2fbdb12e0bdc16e1479a5481838dd82a7457bcf45a2db6a64a85e4a658e37288f63e7864896fc534721df67eda97
+SHA512 (setuptools-38.4.0.zip) = ed419f19a449bf690864cccc5ca747344d932fcbdff5fe8b3cd810df890a18a675f98be2bd377ab7d20c2a9456628f4fcf53f046495751fdfc51fd459e669601