diff --git a/.gitignore b/.gitignore
index 367fb3503..ff09453b7 100644
--- a/.gitignore
+++ b/.gitignore
@@ -97,8 +97,6 @@ mex/build/matlab/run_m2html.m
 # Preprocessor
 /preprocessor/dynare_m
 /preprocessor/dynare_m.exe
-/preprocessor/dynare_m64
-/preprocessor/dynare_m64.exe
 /preprocessor/DynareBison.cc
 /preprocessor/DynareBison.hh
 /preprocessor/FlexLexer.h
@@ -115,8 +113,7 @@ mex/build/matlab/run_m2html.m
 /preprocessor/doc/
 
 # MATLAB dir
-/matlab/dynare_m
-/matlab/dynare_m.exe
+/matlab/preprocessor*
 /matlab/dynare_version.m
 
 # DLL rules
diff --git a/matlab/dynare.m b/matlab/dynare.m
index 299b073e9..9cdf8bf37 100644
--- a/matlab/dynare.m
+++ b/matlab/dynare.m
@@ -152,14 +152,14 @@ else
 end
 
 if isempty(strfind(arch, '64'))
-  arch_ext64 = '';
+  arch_ext = '32';
   disp('Using 32-bit preprocessor');
 else
-  arch_ext64 = '64';
+  arch_ext = '64';
   disp('Using 64-bit preprocessor');
 end
 
-command = ['"' dynareroot 'dynare_m' arch_ext64 '" ' fname] ;
+command = ['"' dynareroot 'preprocessor' arch_ext filesep 'dynare_m" ' fname] ;
 for i=2:nargin
     command = [command ' ' varargin{i-1}];
 end
diff --git a/preprocessor/Makefile.am b/preprocessor/Makefile.am
index bce3bbe68..804282738 100644
--- a/preprocessor/Makefile.am
+++ b/preprocessor/Makefile.am
@@ -70,11 +70,12 @@ DynareBison.cc DynareBison.hh location.hh stack.hh position.hh: DynareBison.yy
 
 all-local:
 	if [ -z "`file $(PROGRAMS) | grep x86.64`" ]; then \
-	  ARCH=""; \
+	  ARCH="32"; \
 	else \
 	  ARCH="64"; \
 	fi; \
-	cd ../matlab && $(LN_S) -f $(abs_srcdir)/$(PROGRAMS) $(PROGRAMS)$$ARCH
+	mkdir -p ../matlab/preprocessor$$ARCH ; \
+	cd ../matlab/preprocessor$$ARCH && $(LN_S) -f $(abs_srcdir)/$(PROGRAMS) $(PROGRAMS)
 
 if HAVE_DOXYGEN
 html-local: