diff --git a/.ci/openvino-onnx/Dockerfile b/.ci/openvino-onnx/Dockerfile
index 11f36dbefda..22197a79f38 100644
--- a/.ci/openvino-onnx/Dockerfile
+++ b/.ci/openvino-onnx/Dockerfile
@@ -72,5 +72,5 @@ RUN ninja install
 WORKDIR /openvino/src/bindings/python
 ENV OpenVINO_DIR=/openvino/dist/runtime/cmake
 ENV LD_LIBRARY_PATH=/openvino/dist/runtime/lib/intel64:/openvino/dist/runtime/3rdparty/tbb/lib
-ENV PYTHONPATH=/openvino/bin/intel64/${BUILD_TYPE}/python_api/python3.11:${PYTHONPATH}
+ENV PYTHONPATH=/openvino/bin/intel64/${BUILD_TYPE}/python:${PYTHONPATH}
 CMD tox
diff --git a/cmake/developer_package/packaging/debian/debian.cmake b/cmake/developer_package/packaging/debian/debian.cmake
index d4ba8cd5e81..f279ef5e4dc 100644
--- a/cmake/developer_package/packaging/debian/debian.cmake
+++ b/cmake/developer_package/packaging/debian/debian.cmake
@@ -32,7 +32,7 @@ macro(ov_debian_cpack_set_dirs)
     set(OV_CPACK_OPENVINO_CMAKEDIR ${OV_CPACK_RUNTIMEDIR}/cmake/openvino${OpenVINO_VERSION})
     set(OV_CPACK_DOCDIR ${CMAKE_INSTALL_DATADIR}/doc/openvino-${OpenVINO_VERSION})
     set(OV_CPACK_LICENSESDIR ${OV_CPACK_DOCDIR}/licenses)
-    set(OV_CPACK_PYTHONDIR lib/python3/dist-packages)
+    set(OV_CPACK_PYTHONDIR ${OV_CPACK_RUNTIMEDIR}/python3/dist-packages)
 
     # non-native stuff
     set(OV_CPACK_SHAREDIR ${CMAKE_INSTALL_DATADIR}/openvino) # internal
diff --git a/cmake/developer_package/packaging/packaging.cmake b/cmake/developer_package/packaging/packaging.cmake
index 124df389322..86c95ae1c82 100644
--- a/cmake/developer_package/packaging/packaging.cmake
+++ b/cmake/developer_package/packaging/packaging.cmake
@@ -43,16 +43,12 @@ macro(ov_cpack_set_dirs)
     set(OV_CPACK_NGRAPH_CMAKEDIR runtime/cmake)
     set(OV_CPACK_OPENVINO_CMAKEDIR runtime/cmake)
     set(OV_CPACK_DOCDIR docs)
-    set(OV_CPACK_LICENSESDIR ${OV_CPACK_DOCDIR}/licenses)
+    set(OV_CPACK_LICENSESDIR licenses)
     set(OV_CPACK_SAMPLESDIR samples)
     set(OV_CPACK_WHEELSDIR tools)
     set(OV_CPACK_TOOLSDIR tools)
     set(OV_CPACK_DEVREQDIR tools)
-
-    ov_get_pyversion(pyversion)
-    if(pyversion)
-        set(OV_CPACK_PYTHONDIR python/${pyversion})
-    endif()
+    set(OV_CPACK_PYTHONDIR python)
 
     if(WIN32)
         set(OV_CPACK_LIBRARYDIR runtime/lib/${ARCH_FOLDER}/$<CONFIG>)
diff --git a/cmake/developer_package/packaging/rpm/rpm.cmake b/cmake/developer_package/packaging/rpm/rpm.cmake
index e46c6deae20..205600fd233 100644
--- a/cmake/developer_package/packaging/rpm/rpm.cmake
+++ b/cmake/developer_package/packaging/rpm/rpm.cmake
@@ -24,11 +24,6 @@ macro(ov_rpm_cpack_set_dirs)
     set(OV_CPACK_DOCDIR ${CMAKE_INSTALL_DATADIR}/doc/openvino-${OpenVINO_VERSION})
     set(OV_CPACK_LICENSESDIR ${OV_CPACK_DOCDIR}/licenses)
 
-    # TODO:
-    # 1. define python installation directories for RPM packages
-    # 2. make sure only a single version of python API can be installed at the same time (define conflicts section)
-    # set(OV_CPACK_PYTHONDIR lib/python3/dist-packages)
-
     ov_get_pyversion(pyversion)
     if(pyversion)
         set(OV_CPACK_PYTHONDIR ${CMAKE_INSTALL_LIBDIR}/${pyversion}/site-packages)
diff --git a/scripts/setupvars/setupvars.bat b/scripts/setupvars/setupvars.bat
index d25a910317d..25c9fb350ec 100644
--- a/scripts/setupvars/setupvars.bat
+++ b/scripts/setupvars/setupvars.bat
@@ -106,7 +106,7 @@ if %pyversion_major% equ %PYTHON_VERSION_MAJOR% (
 )
 
 if not "%check_pyversion%"=="true" (
-   echo Unsupported Python version. Please install one of Python %PYTHON_VERSION_MAJOR%.%MIN_REQUIRED_PYTHON_VERSION_MINOR% - %PYTHON_VERSION_MAJOR%.%MAX_SUPPORTED_PYTHON_VERSION_MINOR% ^(64-bit^) from https://www.python.org/downloads/
+   echo Unsupported Python version %pyversion_major%.%pyversion_minor%. Please install one of Python %PYTHON_VERSION_MAJOR%.%MIN_REQUIRED_PYTHON_VERSION_MINOR% - %PYTHON_VERSION_MAJOR%.%MAX_SUPPORTED_PYTHON_VERSION_MINOR% ^(64-bit^) from https://www.python.org/downloads/
    exit /B 0
 )
 
@@ -126,7 +126,7 @@ if not "%bitness%"=="64" (
    exit /B 0
 )
 
-set PYTHONPATH=%INTEL_OPENVINO_DIR%\python\python%pyversion_major%.%pyversion_minor%;%INTEL_OPENVINO_DIR%\python\python3;%PYTHONPATH%
+set PYTHONPATH=%INTEL_OPENVINO_DIR%\python;%INTEL_OPENVINO_DIR%\python\python3;%PYTHONPATH%
 exit /B 0
 
 :GetFullPath
diff --git a/scripts/setupvars/setupvars.sh b/scripts/setupvars/setupvars.sh
index e7e89c86779..e87b3538580 100755
--- a/scripts/setupvars/setupvars.sh
+++ b/scripts/setupvars/setupvars.sh
@@ -116,7 +116,7 @@ check_python_version () {
     if  [ "$PYTHON_VERSION_MAJOR" != "$python_version_major" ] ||
         [ "$python_version_minor" -lt "$MIN_REQUIRED_PYTHON_VERSION_MINOR" ] ||
         [ "$python_version_minor" -gt "$MAX_SUPPORTED_PYTHON_VERSION_MINOR" ] ; then
-        echo "[setupvars.sh] WARNING: Unsupported Python version. Please install one of Python" \
+        echo "[setupvars.sh] WARNING: Unsupported Python version ${python_version}. Please install one of Python" \
         "${PYTHON_VERSION_MAJOR}.${MIN_REQUIRED_PYTHON_VERSION_MINOR} -" \
         "${PYTHON_VERSION_MAJOR}.${MAX_SUPPORTED_PYTHON_VERSION_MINOR} (64-bit) from https://www.python.org/downloads/"
         return 0
@@ -136,14 +136,8 @@ check_python_version () {
         if [[ -d $INTEL_OPENVINO_DIR/python ]]; then
             # add path to OpenCV API for Python 3.x
             export PYTHONPATH="$INTEL_OPENVINO_DIR/python/python3:$PYTHONPATH"
-            pydir=$INTEL_OPENVINO_DIR/python/python$python_version
-            if [[ -d $pydir ]]; then
-                # add path to Inference Engine Python API
-                export PYTHONPATH="${pydir}:${PYTHONPATH}"
-            else
-                echo "[setupvars.sh] WARNING: Can not find OpenVINO Python module for python${python_version} by path ${pydir}"
-                echo "[setupvars.sh] WARNING: OpenVINO Python environment does not set properly"
-            fi
+            # add path to OpenVINO Python API
+            export PYTHONPATH="$INTEL_OPENVINO_DIR/python:${PYTHONPATH}"
         else
             echo "[setupvars.sh] WARNING: Can not find OpenVINO Python binaries by path ${INTEL_OPENVINO_DIR}/python"
             echo "[setupvars.sh] WARNING: OpenVINO Python environment does not set properly"
diff --git a/src/bindings/python/src/compatibility/openvino/CMakeLists.txt b/src/bindings/python/src/compatibility/openvino/CMakeLists.txt
index 24ca2d8ce8d..c6da4b68826 100644
--- a/src/bindings/python/src/compatibility/openvino/CMakeLists.txt
+++ b/src/bindings/python/src/compatibility/openvino/CMakeLists.txt
@@ -32,9 +32,9 @@ set(pyversion python${PYTHON_VERSION_MAJOR}.${PYTHON_VERSION_MINOR})
 
 set(PYTHON_COMPONENT ${OV_CPACK_COMP_PYTHON_IE_API}_${pyversion})
 if(OV_GENERATOR_MULTI_CONFIG)
-    set(PYTHON_BRIDGE_OUTPUT_DIRECTORY ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/$<CONFIG>/python_api/${pyversion}/openvino)
+    set(PYTHON_BRIDGE_OUTPUT_DIRECTORY ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/$<CONFIG>/python/openvino)
 else()
-    set(PYTHON_BRIDGE_OUTPUT_DIRECTORY ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/python_api/${pyversion}/openvino)
+    set(PYTHON_BRIDGE_OUTPUT_DIRECTORY ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/python/openvino)
 endif()
 
 function(ov_python_disable_intel_warnings target)
diff --git a/src/bindings/python/src/compatibility/openvino/inference_engine/CMakeLists.txt b/src/bindings/python/src/compatibility/openvino/inference_engine/CMakeLists.txt
index fe0ea6fb572..69a5d8f4766 100644
--- a/src/bindings/python/src/compatibility/openvino/inference_engine/CMakeLists.txt
+++ b/src/bindings/python/src/compatibility/openvino/inference_engine/CMakeLists.txt
@@ -78,7 +78,6 @@ endif()
 add_custom_command(TARGET ${TARGET_NAME}
     POST_BUILD
     COMMAND ${CMAKE_COMMAND} -E copy ${CMAKE_CURRENT_SOURCE_DIR}/__init__.py ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/__init__.py
-    COMMAND ${CMAKE_COMMAND} -E copy ${CMAKE_CURRENT_SOURCE_DIR}/../__init__.py ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/../__init__.py
 )
 
 # install
diff --git a/src/bindings/python/src/compatibility/pyngraph/CMakeLists.txt b/src/bindings/python/src/compatibility/pyngraph/CMakeLists.txt
index 785c04fc57e..7fbbc8ca09c 100644
--- a/src/bindings/python/src/compatibility/pyngraph/CMakeLists.txt
+++ b/src/bindings/python/src/compatibility/pyngraph/CMakeLists.txt
@@ -14,13 +14,12 @@ endif()
 
 # PYTHON_VERSION_MAJOR and PYTHON_VERSION_MINOR are defined inside pybind11
 set(pyversion python${PYTHON_VERSION_MAJOR}.${PYTHON_VERSION_MINOR})
-message(STATUS "Python version=${pyversion}")
 
 if(OpenVINO_SOURCE_DIR)
     if(OV_GENERATOR_MULTI_CONFIG)
-        set(PYTHON_BRIDGE_OUTPUT_DIRECTORY ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/$<CONFIG>/python_api/${pyversion}/)
+        set(PYTHON_BRIDGE_OUTPUT_DIRECTORY ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/$<CONFIG>/python/)
     else()
-        set(PYTHON_BRIDGE_OUTPUT_DIRECTORY ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/python_api/${pyversion}/)
+        set(PYTHON_BRIDGE_OUTPUT_DIRECTORY ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/python/)
     endif()
 
     set(CMAKE_LIBRARY_OUTPUT_DIRECTORY ${PYTHON_BRIDGE_OUTPUT_DIRECTORY})
diff --git a/src/bindings/python/src/pyopenvino/CMakeLists.txt b/src/bindings/python/src/pyopenvino/CMakeLists.txt
index cb5011a6050..d52e27ea4a9 100644
--- a/src/bindings/python/src/pyopenvino/CMakeLists.txt
+++ b/src/bindings/python/src/pyopenvino/CMakeLists.txt
@@ -9,13 +9,12 @@ endif()
 
 # PYTHON_VERSION_MAJOR and PYTHON_VERSION_MINOR are defined inside pybind11
 set(pyversion python${PYTHON_VERSION_MAJOR}.${PYTHON_VERSION_MINOR})
-message(STATUS "Python version=${pyversion}")
 
 if(OpenVINO_SOURCE_DIR)
     if(OV_GENERATOR_MULTI_CONFIG)
-        set(PYTHON_BRIDGE_OUTPUT_DIRECTORY ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/$<CONFIG>/python_api/${pyversion}/openvino)
+        set(PYTHON_BRIDGE_OUTPUT_DIRECTORY ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/$<CONFIG>/python/openvino)
     else()
-        set(PYTHON_BRIDGE_OUTPUT_DIRECTORY ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/python_api/${pyversion}/openvino)
+        set(PYTHON_BRIDGE_OUTPUT_DIRECTORY ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/python/openvino)
     endif()
 
     set(CMAKE_LIBRARY_OUTPUT_DIRECTORY ${PYTHON_BRIDGE_OUTPUT_DIRECTORY})
@@ -102,7 +101,6 @@ if(OpenVINO_SOURCE_DIR)
             POST_BUILD
             COMMAND ${CMAKE_COMMAND} -E copy_directory ${OpenVINOPython_SOURCE_DIR}/src/openvino ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}
             COMMAND ${CMAKE_COMMAND} -E copy ${OpenVINOPython_SOURCE_DIR}/requirements.txt ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/../requirements.txt
-            COMMAND ${CMAKE_COMMAND} -E copy ${OpenVINOPython_SOURCE_DIR}/requirements.txt ${CMAKE_LIBRARY_OUTPUT_DIRECTORY}/../../requirements.txt
             )
 endif()
 
diff --git a/tools/deployment_manager/configs/darwin.json b/tools/deployment_manager/configs/darwin.json
index abfeee80e39..c7e42edcae6 100644
--- a/tools/deployment_manager/configs/darwin.json
+++ b/tools/deployment_manager/configs/darwin.json
@@ -10,7 +10,7 @@
     "openvino_license": {
       "mandatory" : "yes",
       "files": [
-        "docs/licensing"
+        "licensing"
       ]
     },
     "ie_core": {
diff --git a/tools/deployment_manager/configs/linux.json b/tools/deployment_manager/configs/linux.json
index 39925625ae1..548b8894889 100644
--- a/tools/deployment_manager/configs/linux.json
+++ b/tools/deployment_manager/configs/linux.json
@@ -16,7 +16,7 @@
     "openvino_license": {
       "mandatory" : "yes",
       "files": [
-        "docs/licensing"
+        "licensing"
       ]
     },
     "ie_core": {
diff --git a/tools/deployment_manager/configs/windows.json b/tools/deployment_manager/configs/windows.json
index 29b5f271fda..49753323463 100644
--- a/tools/deployment_manager/configs/windows.json
+++ b/tools/deployment_manager/configs/windows.json
@@ -10,7 +10,7 @@
     "openvino_license": {
       "mandatory" : "yes",
       "files": [
-        "docs/licensing"
+        "licensing"
       ]
     },
     "ie_core": {