diff --git a/Tools/ros2/ardupilot_sitl/CMakeLists.txt b/Tools/ros2/ardupilot_sitl/CMakeLists.txt
index ed14ee2a89..9d40ea746d 100644
--- a/Tools/ros2/ardupilot_sitl/CMakeLists.txt
+++ b/Tools/ros2/ardupilot_sitl/CMakeLists.txt
@@ -80,7 +80,9 @@ install(DIRECTORY
 )
 
 # Install Python package.
-ament_python_install_package(${PROJECT_NAME})
+ament_python_install_package(${PROJECT_NAME}
+  PACKAGE_DIR src/${PROJECT_NAME}
+)
 
 # --------------------------------------------------------------------------- #
 # build tests
diff --git a/Tools/ros2/ardupilot_sitl/ardupilot_sitl/__init__.py b/Tools/ros2/ardupilot_sitl/src/ardupilot_sitl/__init__.py
similarity index 100%
rename from Tools/ros2/ardupilot_sitl/ardupilot_sitl/__init__.py
rename to Tools/ros2/ardupilot_sitl/src/ardupilot_sitl/__init__.py