diff --git a/README.md b/README.md
index 4a9530e..c8f9c80 100644
--- a/README.md
+++ b/README.md
@@ -41,6 +41,12 @@ git submodule update --init
 
 ### Source compile and install
 
+To install all required python packages run the following command:
+
+```
+python3 -m pip install -r requirements.txt
+```
+
 To configure, build and install Open CAS Linux run following commands:
 
 ```
diff --git a/requirements.txt b/requirements.txt
new file mode 100644
index 0000000..b77ec52
--- /dev/null
+++ b/requirements.txt
@@ -0,0 +1,2 @@
+packaging>=20.3
+PyYAML>=6.0