diff --git a/.gitmodules b/.gitmodules
new file mode 100644
index 0000000..e400153
--- /dev/null
+++ b/.gitmodules
@@ -0,0 +1,6 @@
+[submodule "matrix-sdk"]
+	path = matrix-sdk
+	url = https://github.com/matrix-org/matrix-android-sdk
+[submodule "olm-sdk"]
+	path = olm-sdk
+	url = http://git.matrix.org/git/olm.git/
diff --git a/app/build.gradle b/app/build.gradle
index 7eb3280..952fb3c 100644
--- a/app/build.gradle
+++ b/app/build.gradle
@@ -17,12 +17,6 @@ android {
             proguardFiles getDefaultProguardFile('proguard-android.txt'), 'proguard-rules.pro'
         }
     }
-
-    repositories {
-        flatDir {
-            dir 'libs'
-        }
-    }
 }
 
 dependencies {
@@ -35,9 +29,9 @@ dependencies {
     compile 'com.android.support.constraint:constraint-layout:1.0.2'
     testCompile 'junit:junit:4.12'
 
-    compile(name: 'matrix-sdk', ext: 'aar')
-    compile(name: 'olm-sdk', ext: 'aar')
-
+    implementation project(':olm-sdk')
+    implementation project(':matrix-sdk')
+    
     compile 'com.squareup.retrofit:retrofit:1.6.1'
     compile 'com.google.code.gson:gson:2.3'
     compile 'com.squareup.okhttp:okhttp-urlconnection:2.2.0'
diff --git a/app/libs/matrix-sdk.aar b/app/libs/matrix-sdk.aar
deleted file mode 100644
index 19eccfe..0000000
Binary files a/app/libs/matrix-sdk.aar and /dev/null differ
diff --git a/app/libs/olm-sdk.aar b/app/libs/olm-sdk.aar
deleted file mode 100644
index 78f1599..0000000
Binary files a/app/libs/olm-sdk.aar and /dev/null differ
diff --git a/matrix-sdk b/matrix-sdk
new file mode 160000
index 0000000..4498034
--- /dev/null
+++ b/matrix-sdk
@@ -0,0 +1 @@
+Subproject commit 4498034a3af3a886df2cda822897871206fddfcd
diff --git a/olm-sdk b/olm-sdk
new file mode 160000
index 0000000..ec2695b
--- /dev/null
+++ b/olm-sdk
@@ -0,0 +1 @@
+Subproject commit ec2695b9c945fa577c6fc4501d65a186208ecfed
diff --git a/settings.gradle b/settings.gradle
index e7b4def..960c18d 100644
--- a/settings.gradle
+++ b/settings.gradle
@@ -1 +1,5 @@
 include ':app'
+include ':olm-sdk'
+project(':olm-sdk').projectDir=new File('olm-sdk/android/olm-sdk')
+include ':matrix-sdk'
+project(':matrix-sdk').projectDir=new File('matrix-sdk/matrix-sdk')
\ No newline at end of file