diff --git a/src/bindings/python/CMakeLists.txt b/src/bindings/python/CMakeLists.txt
index 6cf43ec3fed..83e03d4390f 100644
--- a/src/bindings/python/CMakeLists.txt
+++ b/src/bindings/python/CMakeLists.txt
@@ -319,14 +319,14 @@ if(ENABLE_PYTHON_PACKAGING)
 
     # install OpenVINO Python API
 
-    set(python_package_prefix "${CMAKE_CURRENT_BINARY_DIR}/install_${pyversion}")
-    set(install_lib "${python_package_prefix}/lib/${python_versioned_folder}/${ov_site_packages}")
+    set(ov_python_package_prefix "${CMAKE_CURRENT_BINARY_DIR}/openvino/install_${pyversion}")
+    set(ov_install_lib "${ov_python_package_prefix}/lib/${python_versioned_folder}/${ov_site_packages}")
     set(openvino_meta_info_subdir "openvino-${OpenVINO_VERSION}-py${python_xy}.egg-info")
-    set(openvino_meta_info_file "${install_lib}/${openvino_meta_info_subdir}/PKG-INFO")
+    set(openvino_meta_info_file "${ov_install_lib}/${openvino_meta_info_subdir}/PKG-INFO")
 
     add_custom_command(OUTPUT ${openvino_meta_info_file}
         COMMAND ${CMAKE_COMMAND} -E remove_directory
-            "${python_package_prefix}"
+            "${ov_python_package_prefix}"
         COMMAND ${setup_py_env}
                 # variables to reflect options (extensions only or full wheel package)
                 PYTHON_EXTENSIONS_ONLY=ON
@@ -339,9 +339,9 @@ if(ENABLE_PYTHON_PACKAGING)
                 build_ext
                 install
                     --no-compile
-                    --prefix "${python_package_prefix}"
-                    --install-lib "${install_lib}"
-                    --install-scripts "${python_package_prefix}/bin"
+                    --prefix "${ov_python_package_prefix}"
+                    --install-lib "${ov_install_lib}"
+                    --install-scripts "${ov_python_package_prefix}/bin"
                     --single-version-externally-managed
                     --record=installed.txt
         WORKING_DIRECTORY "${CMAKE_CURRENT_BINARY_DIR}"
@@ -349,14 +349,17 @@ if(ENABLE_PYTHON_PACKAGING)
         COMMENT "Create python package with ${openvino_meta_info_subdir} folder")
 
     # Install OpenVINO Telemetry
-
     set(OpenVINO_Telemetry_SOURCE_DIR "${OpenVINO_SOURCE_DIR}/thirdparty/telemetry")
     file(GLOB_RECURSE telemetry_files ${OpenVINO_Telemetry_SOURCE_DIR}/*)
 
+    set(telemetry_python_package_prefix "${CMAKE_CURRENT_BINARY_DIR}/telemetry/install_${pyversion}")
+    set(telemetry_install_lib "${telemetry_python_package_prefix}/lib/${python_versioned_folder}/${ov_site_packages}")
     set(openvino_telemetry_meta_info_subdir "openvino-telemetry-${OpenVINO_VERSION}-py${python_xy}.egg-info")
-    set(openvino_telemetry_meta_info_file "${install_lib}/${openvino_telemetry_meta_info_subdir}/PKG-INFO")
+    set(openvino_telemetry_meta_info_file "${telemetry_install_lib}/${openvino_telemetry_meta_info_subdir}/PKG-INFO")
 
     add_custom_command(OUTPUT ${openvino_telemetry_meta_info_file}
+        COMMAND ${CMAKE_COMMAND} -E remove_directory
+        "${telemetry_python_package_prefix}"
         COMMAND "${Python3_EXECUTABLE}" "${OpenVINO_Telemetry_SOURCE_DIR}/setup.py"
                     --no-user-cfg
                     --quiet
@@ -364,9 +367,9 @@ if(ENABLE_PYTHON_PACKAGING)
                         --executable "/usr/bin/python3"
                     install
                         --no-compile
-                        --prefix "${python_package_prefix}"
-                        --install-lib "${install_lib}"
-                        --install-scripts "${python_package_prefix}/bin"
+                        --prefix "${telemetry_python_package_prefix}"
+                        --install-lib "${telemetry_install_lib}"
+                        --install-scripts "${telemetry_python_package_prefix}/bin"
                         --single-version-externally-managed
                         --record=installed.txt
         WORKING_DIRECTORY "${OpenVINO_Telemetry_SOURCE_DIR}"
@@ -380,7 +383,7 @@ if(ENABLE_PYTHON_PACKAGING)
     # install python package, which will be later packed into DEB | RPM
     ov_cpack_add_component(${OV_CPACK_COMP_PYTHON_OPENVINO}_package_${pyversion} HIDDEN)
 
-    install(DIRECTORY ${python_package_prefix}/
+    install(DIRECTORY ${ov_python_package_prefix}/ ${telemetry_python_package_prefix}/
             DESTINATION ${CMAKE_INSTALL_PREFIX}
             COMPONENT ${OV_CPACK_COMP_PYTHON_OPENVINO_PACKAGE}_${pyversion}
             ${OV_CPACK_COMP_PYTHON_OPENVINO_PACKAGE_EXCLUDE_ALL}