diff --git a/include/target.mk b/include/target.mk
index f1292987f2..d8c0212cf8 100644
--- a/include/target.mk
+++ b/include/target.mk
@@ -263,6 +263,7 @@ ifeq ($(DUMP),1)
   endif
   ifeq ($(ARCH),arc)
     CPU_TYPE ?= arc700
+    CPU_CFLAGS += -matomic
     CPU_CFLAGS_arc700 = -marc700
   endif
   DEFAULT_CFLAGS=$(strip $(CPU_CFLAGS) $(CPU_CFLAGS_$(CPU_TYPE)) $(CPU_CFLAGS_$(CPU_SUBTYPE)))
diff --git a/target/linux/arc770/Makefile b/target/linux/arc770/Makefile
index 52c5e0008d..f917338aa4 100644
--- a/target/linux/arc770/Makefile
+++ b/target/linux/arc770/Makefile
@@ -9,7 +9,6 @@ include $(TOPDIR)/rules.mk
 ARCH:=arc
 BOARD:=arc770
 BOARDNAME:=Synopsys DesignWare ARC 770D
-CFLAGS:=-Os -pipe -fno-caller-saves -matomic
 MAINTAINER:=Alexey Brodkin <abrodkin@synopsys.com>
 SUBTARGETS:=generic