diff --git a/diskimage_builder/elements/selinux-permissive/install.d/11-selinux-permissive b/diskimage_builder/elements/selinux-permissive/pre-install.d/11-selinux-permissive
similarity index 100%
rename from diskimage_builder/elements/selinux-permissive/install.d/11-selinux-permissive
rename to diskimage_builder/elements/selinux-permissive/pre-install.d/11-selinux-permissive
diff --git a/releasenotes/notes/selinux-permissive-pre-install-ce19461ef17ec972.yaml b/releasenotes/notes/selinux-permissive-pre-install-ce19461ef17ec972.yaml
new file mode 100644
index 000000000..79217ad4d
--- /dev/null
+++ b/releasenotes/notes/selinux-permissive-pre-install-ce19461ef17ec972.yaml
@@ -0,0 +1,7 @@
+---
+other:
+  - |
+    Setting values with the ``selinux-permissive`` element has been
+    moved from ``install.d`` to ``pre-install.d`` phase to avoid
+    selinux related packages being installed before the settings are
+    applied.