diff --git a/Makefile b/Makefile
index 7784771be9..8f09d5dc45 100644
--- a/Makefile
+++ b/Makefile
@@ -122,7 +122,7 @@ update-helm: manifests yq
 .PHONY: generate
 generate: gomod-download controller-gen ## Generate code containing DeepCopy, DeepCopyInto, and DeepCopyObject method implementations and client-go libraries.
 	$(CONTROLLER_GEN) object:headerFile="hack/boilerplate.go.txt" paths="./apis/..."
-	./hack/update-codegen.sh $(GO_CMD)
+	TOOLS_DIR=${TOOLS_DIR} ./hack/update-codegen.sh $(GO_CMD)
 
 .PHONY: fmt
 fmt: ## Run go fmt against code.
diff --git a/hack/internal/tools/go.mod b/hack/internal/tools/go.mod
index 5384d86f56..0c4a4c3f78 100644
--- a/hack/internal/tools/go.mod
+++ b/hack/internal/tools/go.mod
@@ -110,7 +110,7 @@ require (
 	k8s.io/client-go v0.30.0 // indirect
 	k8s.io/gengo/v2 v2.0.0-20240228010128-51d4e06bde70 // indirect
 	k8s.io/klog/v2 v2.120.1 // indirect
-	k8s.io/kube-openapi v0.0.0-20240228011516-70dd3763d340 // indirect
+	k8s.io/kube-openapi v0.0.0-20240521193020-835d969ad83a // indirect
 	k8s.io/utils v0.0.0-20230726121419-3b25d923346b // indirect
 	sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd // indirect
 	sigs.k8s.io/kustomize/api v0.13.5-0.20230601165947-6ce0bf390ce3 // indirect
diff --git a/hack/internal/tools/go.sum b/hack/internal/tools/go.sum
index c1869f7da4..30d3fbc784 100644
--- a/hack/internal/tools/go.sum
+++ b/hack/internal/tools/go.sum
@@ -466,8 +466,8 @@ k8s.io/gengo/v2 v2.0.0-20240228010128-51d4e06bde70 h1:NGrVE502P0s0/1hudf8zjgwki1
 k8s.io/gengo/v2 v2.0.0-20240228010128-51d4e06bde70/go.mod h1:VH3AT8AaQOqiGjMF9p0/IM1Dj+82ZwjfxUP1IxaHE+8=
 k8s.io/klog/v2 v2.120.1 h1:QXU6cPEOIslTGvZaXvFWiP9VKyeet3sawzTOvdXb4Vw=
 k8s.io/klog/v2 v2.120.1/go.mod h1:3Jpz1GvMt720eyJH1ckRHK1EDfpxISzJ7I9OYgaDtPE=
-k8s.io/kube-openapi v0.0.0-20240228011516-70dd3763d340 h1:BZqlfIlq5YbRMFko6/PM7FjZpUb45WallggurYhKGag=
-k8s.io/kube-openapi v0.0.0-20240228011516-70dd3763d340/go.mod h1:yD4MZYeKMBwQKVht279WycxKyM84kkAx2DPrTXaeb98=
+k8s.io/kube-openapi v0.0.0-20240521193020-835d969ad83a h1:zD1uj3Jf+mD4zmA7W+goE5TxDkI7OGJjBNBzq5fJtLA=
+k8s.io/kube-openapi v0.0.0-20240521193020-835d969ad83a/go.mod h1:UxDHUPsUwTOOxSU+oXURfFBcAS6JwiRXTYqYwfuGowc=
 k8s.io/utils v0.0.0-20230726121419-3b25d923346b h1:sgn3ZU783SCgtaSJjpcVVlRqd6GSnlTLKgpAAttJvpI=
 k8s.io/utils v0.0.0-20230726121419-3b25d923346b/go.mod h1:OLgZIPagt7ERELqWJFomSt595RzquPNLL48iOWgYOg0=
 sigs.k8s.io/controller-runtime/tools/setup-envtest v0.0.0-20240522175850-2e9781e9fc60 h1:ihaeBTCFuEYPL1T1/FqAavDY7z5UcKSnWpnb+I3DYeM=
diff --git a/hack/update-codegen.sh b/hack/update-codegen.sh
index 3d6dbdfc21..25a7413b5e 100755
--- a/hack/update-codegen.sh
+++ b/hack/update-codegen.sh
@@ -20,40 +20,31 @@ set -o pipefail
 
 GO_CMD=${1:-go}
 KUEUE_ROOT=$(realpath $(dirname ${BASH_SOURCE[0]})/..)
-CODEGEN_PKG=$($GO_CMD list -m -f "{{.Dir}}" k8s.io/code-generator)
-
-cd $(dirname ${BASH_SOURCE[0]})/..
+KUEUE_PKG="sigs.k8s.io/kueue"
+CODEGEN_PKG=$(cd $TOOLS_DIR; go mod download; $GO_CMD list -m -f "{{.Dir}}" k8s.io/code-generator)
 
 source "${CODEGEN_PKG}/kube_codegen.sh"
 
-# TODO: remove the workaround when the issue is solved in the code-generator
-# (https://github.com/kubernetes/code-generator/issues/165).
-# Here, we create the soft link named "sigs.k8s.io" to the parent directory of
-# Kueue to ensure the layout required by the kube_codegen.sh script.
-ln -s .. sigs.k8s.io
-trap "rm sigs.k8s.io" EXIT
-
 # Generating conversion and defaults functions
 kube::codegen::gen_helpers \
-  --input-pkg-root sigs.k8s.io/kueue/apis \
-  --output-base "${KUEUE_ROOT}" \
-  --boilerplate ${KUEUE_ROOT}/hack/boilerplate.go.txt
+  --boilerplate ${KUEUE_ROOT}/hack/boilerplate.go.txt \
+  "${KUEUE_ROOT}/apis"
 
 # Generating OpenAPI for Kueue API extensions
 kube::codegen::gen_openapi \
-  --input-pkg-root sigs.k8s.io/kueue/apis/visibility \
-  --output-pkg-root sigs.k8s.io/kueue/apis/visibility/v1alpha1 \
-  --output-base "${KUEUE_ROOT}" \
+  --boilerplate "${KUEUE_ROOT}/hack/boilerplate.go.txt" \
+  --output-dir "${KUEUE_ROOT}/client-go" \
+  --output-pkg "${KUEUE_PKG}/client-go" \
   --update-report \
-  --boilerplate "${KUEUE_ROOT}/hack/boilerplate.go.txt"
+  "${KUEUE_ROOT}/apis"
 
 kube::codegen::gen_client \
-  --input-pkg-root sigs.k8s.io/kueue/apis \
-  --output-pkg-root sigs.k8s.io/kueue/client-go \
-  --output-base "${KUEUE_ROOT}" \
-  --boilerplate ${KUEUE_ROOT}/hack/boilerplate.go.txt \
+  --boilerplate "${KUEUE_ROOT}/hack/boilerplate.go.txt" \
+  --output-dir "${KUEUE_ROOT}/client-go" \
+  --output-pkg "${KUEUE_PKG}/client-go" \
   --with-watch \
-  --with-applyconfig
+  --with-applyconfig \
+  "${KUEUE_ROOT}/apis"
 
 # We need to clean up the go.mod file since code-generator adds temporary library to the go.mod file.
 "${GO_CMD}" mod tidy