diff --git a/CMakeLists.txt b/CMakeLists.txt
index 6e858a421..8afc6339b 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -383,6 +383,11 @@ if (BUILD_LIBZ3_SHARED)
   endif()
 endif()
 
+################################################################################
+# Link time optimization
+################################################################################
+include(${CMAKE_SOURCE_DIR}/cmake/compiler_lto.cmake)
+
 ################################################################################
 # Report default CMake flags
 ################################################################################
diff --git a/README-CMake.md b/README-CMake.md
index 4bbbd36a8..9289d40f1 100644
--- a/README-CMake.md
+++ b/README-CMake.md
@@ -292,6 +292,7 @@ The following useful options can be passed to CMake whilst configuring.
     when running the ``install`` target.
 * ``ALWAYS_BUILD_DOCS`` - BOOL. If set to ``TRUE`` and ``BUILD_DOCUMENTATION`` is ``TRUE`` then documentation for API bindings will always be built.
     Disabling this is useful for faster incremental builds. The documentation can be manually built by invoking the ``api_docs`` target.
+* ``LINK_TIME_OPTIMIZATION`` - BOOL. If set to ``TRUE`` link time optimization will be enabled.
 
 On the command line these can be passed to ``cmake`` using the ``-D`` option. In ``ccmake`` and ``cmake-gui`` these can be set in the user interface.
 
diff --git a/contrib/cmake/cmake/compiler_lto.cmake b/contrib/cmake/cmake/compiler_lto.cmake
new file mode 100644
index 000000000..b90890f59
--- /dev/null
+++ b/contrib/cmake/cmake/compiler_lto.cmake
@@ -0,0 +1,52 @@
+option(LINK_TIME_OPTIMIZATION "Use link time optimiziation" OFF)
+
+if (LINK_TIME_OPTIMIZATION)
+  message(STATUS "LTO enabled")
+  set(build_types_with_lto "RELEASE" "RELWITHDEBINFO")
+  if (DEFINED CMAKE_CONFIGURATION_TYPES)
+    # Multi configuration generator
+    message(STATUS "Note LTO is only enabled for the following configurations: ${build_types_with_lto}")
+  else()
+    # Single configuration generator
+    string(TOUPPER "${CMAKE_BUILD_TYPE}" _build_type_upper)
+    list(FIND build_types_with_lto "${_build_type_upper}" _index)
+    if ("${_index}" EQUAL -1)
+      message(FATAL_ERROR "Configuration ${CMAKE_BUILD_TYPE} does not support LTO."
+        "You should set LINK_TIME_OPTIMIZATION to OFF.")
+    endif()
+  endif()
+
+  set(_lto_compiler_flag "")
+  set(_lto_linker_flag "")
+  if (("${CMAKE_CXX_COMPILER_ID}" MATCHES "Clang") OR
+      ("${CMAKE_CXX_COMPILER_ID}" MATCHES "GNU"))
+      set(_lto_compiler_flag "-flto")
+      set(_lto_linker_flag "-flto")
+  # FIXME: Remove "x.." when CMP0054 is set to NEW
+  elseif ("x${CMAKE_CXX_COMPILER_ID}" STREQUAL "xMSVC")
+    set(_lto_compiler_flag "/GL")
+    set(_lto_linker_flag "/LTCG")
+  else()
+    message(FATAL_ERROR "Can't enable LTO for compiler \"${CMAKE_CXX_COMPILER_ID}\"."
+      "You should set LINK_TIME_OPTIMIZATION to OFF.")
+  endif()
+  CHECK_CXX_COMPILER_FLAG("${_lto_compiler_flag}" HAS_LTO)
+  if (NOT HAS_LTO)
+    message(FATAL_ERROR "Compiler does not support LTO")
+  endif()
+
+  foreach (_config ${build_types_with_lto})
+    # Set flags compiler and linker flags globally rather than using
+    # `Z3_COMPONENT_CXX_FLAGS` and `Z3_DEPENDENT_EXTRA_CXX_LINK_FLAGS`
+    # respectively.  We need per configuration compiler and linker flags. The
+    # `LINK_FLAGS` property (which we populate with
+    # `Z3_DEPENDENT_EXTRA_CXX_LINK_FLAGS`) doesn't seem to support generator
+    # expressions so we can't do `$<$<CONFIG:Release>:${_lto_linker_flag}>`.
+    set(CMAKE_CXX_FLAGS_${_config} "${CMAKE_CXX_FLAGS_${_config}} ${_lto_compiler_flag}")
+    set(CMAKE_EXE_LINKER_FLAGS_${_config} "${CMAKE_EXE_LINKER_FLAGS_${_config}} ${_lto_linker_flag}")
+    set(CMAKE_SHARED_LINKER_FLAGS_${_config} "${CMAKE_SHARED_LINKER_FLAGS_${_config}} ${_lto_linker_flag}")
+    set(CMAKE_STATIC_LINKER_FLAGS_${_config} "${CMAKE_STATIC_LINKER_FLAGS_${_config}} ${_lto_linker_flag}")
+  endforeach()
+else()
+  message(STATUS "LTO disabled")
+endif()