diff --git a/template/libtofs.jinja b/template/libtofs.jinja
index 3fad8b44..900e62b5 100644
--- a/template/libtofs.jinja
+++ b/template/libtofs.jinja
@@ -2,7 +2,6 @@
                        lookup=None,
                        default_files_switch=['id', 'os_family'],
                        indent_width=6,
-                       v1_path_prefix='',
                        use_subpath=False) %}
   {#-
     Returns a valid value for the "source" parameter of a "file.managed"
@@ -18,8 +17,6 @@
         use as selector switch of the directories under
         "<path_prefix>/files"
       * indent_witdh: indentation of the result value to conform to YAML
-      * v1_path_prefix: (deprecated) only used for injecting a path prefix into
-        the source, to support older TOFS configs
       * use_subpath: defaults to `False` but if set, lookup the source file
         recursively from the current state directory up to `tplroot`
 
@@ -67,9 +64,7 @@
   {%- set src_files = src_files + source_files %}
   {#- Only add to [''] when supporting older TOFS implementations #}
   {%- set path_prefix_exts = [''] %}
-  {%- if v1_path_prefix != '' %}
-    {%- do path_prefix_exts.append(v1_path_prefix) %}
-  {%- elif use_subpath and tplroot != tpldir %}
+  {%- if use_subpath and tplroot != tpldir %}
     {#- Walk directory tree to find {{ files_dir }} #}
     {%- set subpath_parts = tpldir.lstrip(tplroot).lstrip('/').split('/') %}
     {%- for path in subpath_parts %}