diff --git a/gtk/gtkmodule.c b/gtk/gtkmodule.c
index c0e1493..aa8cf10 100644
--- a/gtk/gtkmodule.c
+++ b/gtk/gtkmodule.c
@@ -227,8 +227,12 @@ init_gtk(void)
     pygtk_add_stock_items(d);
     
     /* extension API */
-    PyDict_SetItemString(d, "_PyGtk_API",
-			 o=PyCObject_FromVoidPtr(&functions, NULL));
+#if PY_VERSION_HEX >= 0x02070000
+    o = PyCapsule_New(&functions, "gtk._gtk._PyGtk_API", NULL);
+#else
+    o = PyCObject_FromVoidPtr(&functions, NULL);
+#endif
+    PyDict_SetItemString(d, "_PyGtk_API", o);
     Py_DECREF(o);
 	
     PyGtkDeprecationWarning = PyErr_NewException("gtk.GtkDeprecationWarning",
diff --git a/gtk/pygtk.h b/gtk/pygtk.h
index 573c3b9..e4c680f 100644
--- a/gtk/pygtk.h
+++ b/gtk/pygtk.h
@@ -60,6 +60,18 @@ struct _PyGtk_FunctionStruct *_PyGtk_API;
 
 
 /* a function to initialise the pygtk functions */
+
+/* Python 2.7 introduced the PyCapsule API and deprecated the CObject API */
+#if PY_VERSION_HEX >= 0x02070000
+#define init_pygtk() G_STMT_START { \
+    void *capsule = PyCapsule_Import("gtk._gtk._PyGtk_API", 0); \
+    if (!capsule) { \
+        return; \
+    } \
+    _PyGtk_API = (struct _PyGtk_FunctionStruct*)capsule; \
+} G_STMT_END
+#else /* PY_VERSION_HEX */
+/* Python 2.6 and earlier use the CObject API */
 #define init_pygtk() G_STMT_START { \
     PyObject *pygtk = PyImport_ImportModule("gtk"); \
     if (pygtk != NULL) { \
@@ -79,6 +91,7 @@ struct _PyGtk_FunctionStruct *_PyGtk_API;
         return; \
     } \
 } G_STMT_END
+#endif /* PY_VERSION_HEX */
 
 #endif