diff --git a/sysbuild.cmake b/sysbuild.cmake
index bbde447..c30b9a0 100644
--- a/sysbuild.cmake
+++ b/sysbuild.cmake
@@ -60,10 +60,12 @@ if(EXISTS "${APP_PRJ_CONF}")
     string(REGEX REPLACE "[^A-Za-z0-9_.+-]" "_" DFU_ZIP_SUFFIX "${DFU_ZIP_SUFFIX}")
 
     set(DFU_ZIP_SOURCE "${CMAKE_BINARY_DIR}/dfu_application.zip")
-    set(DFU_ZIP_VERSIONED "${CMAKE_BINARY_DIR}/dfu_application_${DFU_ZIP_SUFFIX}.zip")
+    set(DFU_ZIP_RELEASE_DIR "${APP_DIR}/release")
+    set(DFU_ZIP_VERSIONED "${DFU_ZIP_RELEASE_DIR}/dfu_application_${DFU_ZIP_SUFFIX}.zip")
 
     add_custom_command(
       OUTPUT "${DFU_ZIP_VERSIONED}"
+      COMMAND ${CMAKE_COMMAND} -E make_directory "${DFU_ZIP_RELEASE_DIR}"
       COMMAND ${CMAKE_COMMAND} -E copy_if_different "${DFU_ZIP_SOURCE}" "${DFU_ZIP_VERSIONED}"
       DEPENDS "${DFU_ZIP_SOURCE}"
       COMMENT "Generating versioned DFU ZIP ${DFU_ZIP_VERSIONED}"