diff --git a/arch/arm/mach-ixp4xx/common.c b/arch/arm/mach-ixp4xx/common.c
index 20b62aa30086..37e6cdac1642 100644
--- a/arch/arm/mach-ixp4xx/common.c
+++ b/arch/arm/mach-ixp4xx/common.c
@@ -45,7 +45,15 @@
 #include <asm/mach/time.h>
 
 #define IXP4XX_TIMER_FREQ 66666000
-#define IXP4XX_LATCH DIV_ROUND_CLOSEST(IXP4XX_TIMER_FREQ, HZ)
+
+/*
+ * The timer register doesn't allow to specify the two least significant bits of
+ * the timeout value and assumes them being zero. So make sure IXP4XX_LATCH is
+ * the best value with the two least significant bits unset.
+ */
+#define IXP4XX_LATCH DIV_ROUND_CLOSEST(IXP4XX_TIMER_FREQ, \
+				       (IXP4XX_OST_RELOAD_MASK + 1) * HZ) * \
+			(IXP4XX_OST_RELOAD_MASK + 1)
 
 static void __init ixp4xx_clocksource_init(void);
 static void __init ixp4xx_clockevent_init(void);