diff --git a/gnu/packages/terminals.scm b/gnu/packages/terminals.scm
index 2d8047dbc5..83e0e46377 100644
--- a/gnu/packages/terminals.scm
+++ b/gnu/packages/terminals.scm
@@ -436,8 +436,7 @@ (define-public mlterm
     (arguments
      `(#:tests? #f                      ; no tests
        #:configure-flags
-       (list (string-append "--prefix=" (assoc-ref %outputs "out"))
-             "--disable-static"
+       (list "--disable-static"
              "--enable-optimize-redrawing"
              "--with-imagelib=gdk-pixbuf")))
     (native-inputs (list gettext-minimal pkg-config))