diff --git a/arch/arm64/Makefile b/arch/arm64/Makefile
index 939b310913cf..953e43dd0417 100644
--- a/arch/arm64/Makefile
+++ b/arch/arm64/Makefile
@@ -14,8 +14,12 @@ LDFLAGS_vmlinux	:=-p --no-undefined -X
 CPPFLAGS_vmlinux.lds = -DTEXT_OFFSET=$(TEXT_OFFSET)
 GZFLAGS		:=-9
 
-ifneq ($(CONFIG_RELOCATABLE),)
-LDFLAGS_vmlinux		+= -pie -shared -Bsymbolic
+ifeq ($(CONFIG_RELOCATABLE), y)
+# Pass --no-apply-dynamic-relocs to restore pre-binutils-2.27 behaviour
+# for relative relocs, since this leads to better Image compression
+# with the relocation offsets always being zero.
+LDFLAGS_vmlinux		+= -pie -shared -Bsymbolic \
+			$(call ld-option, --no-apply-dynamic-relocs)
 endif
 
 ifeq ($(CONFIG_ARM64_ERRATUM_843419),y)