diff --git a/crates/analyze/Cargo.toml b/crates/analyze/Cargo.toml
index a53b2b583..6b8d4e895 100644
--- a/crates/analyze/Cargo.toml
+++ b/crates/analyze/Cargo.toml
@@ -15,7 +15,7 @@ include = ["Cargo.toml", "*.rs", "LICENSE"]
 
 [dependencies]
 contract-metadata = { version = "4.0.0-rc", path = "../metadata" }
-parity-wasm = { version = "0.45.0", features = ["sign_ext"] }
+parity-wasm = { version = "0.45.0" }
 anyhow = "1.0.75"
 
 [dev-dependencies]
diff --git a/crates/build/Cargo.toml b/crates/build/Cargo.toml
index 6bf90009f..a8051ba26 100644
--- a/crates/build/Cargo.toml
+++ b/crates/build/Cargo.toml
@@ -28,7 +28,7 @@ rustc_version = "0.4.0"
 scale = { package = "parity-scale-codec", version = "3.0.0", features = ["derive"] }
 toml = "0.8.8"
 tracing = "0.1.40"
-parity-wasm = { version = "0.45.0", features = ["sign_ext"] }
+parity-wasm = { version = "0.45.0"}
 semver = { version = "1.0.20", features = ["serde"] }
 serde = { version = "1", default-features = false, features = ["derive"] }
 serde_json = "1.0.108"
diff --git a/crates/build/src/lib.rs b/crates/build/src/lib.rs
index 520290bb8..e3fb0ca09 100644
--- a/crates/build/src/lib.rs
+++ b/crates/build/src/lib.rs
@@ -731,14 +731,14 @@ fn load_module<P: AsRef<Path>>(path: P) -> Result<Module> {
 
 /// Performs required post-processing steps on the Wasm artifact.
 fn post_process_wasm(
-    crate_metadata: &CrateMetadata,
+    optimized_code: &PathBuf,
     skip_wasm_validation: bool,
     verbosity: &Verbosity,
     max_memory_pages: u32,
 ) -> Result<()> {
     // Deserialize Wasm module from a file.
-    let mut module = load_module(&crate_metadata.original_code)
-        .context("Loading of original wasm failed")?;
+    let mut module =
+        load_module(optimized_code).context("Loading of optimized wasm failed")?;
 
     strip_exports(&mut module);
     ensure_maximum_memory_pages(&mut module, max_memory_pages)?;
@@ -761,7 +761,7 @@ fn post_process_wasm(
         "resulting wasm size of post processing must be > 0"
     );
 
-    parity_wasm::serialize_to_file(&crate_metadata.dest_code, module)?;
+    parity_wasm::serialize_to_file(optimized_code, module)?;
     Ok(())
 }
 
@@ -1007,17 +1007,14 @@ fn local_build(
 
     match target {
         Target::Wasm => {
+            let handler = WasmOptHandler::new(*optimization_passes, *keep_debug_symbols)?;
+            handler.optimize(&crate_metadata.original_code, &crate_metadata.dest_code)?;
             post_process_wasm(
-                crate_metadata,
+                &crate_metadata.dest_code,
                 *skip_wasm_validation,
                 verbosity,
                 *max_memory_pages,
             )?;
-            let handler = WasmOptHandler::new(*optimization_passes, *keep_debug_symbols)?;
-            handler.optimize(
-                &crate_metadata.dest_code,
-                &crate_metadata.contract_artifact_name,
-            )?;
         }
         Target::RiscV => {
             fs::copy(&crate_metadata.original_code, &crate_metadata.dest_code)?;
diff --git a/crates/build/src/wasm_opt.rs b/crates/build/src/wasm_opt.rs
index afac079ce..d14bad886 100644
--- a/crates/build/src/wasm_opt.rs
+++ b/crates/build/src/wasm_opt.rs
@@ -53,16 +53,7 @@ impl WasmOptHandler {
     /// Attempts to perform optional Wasm optimization using Binaryen's `wasm-opt` tool.
     ///
     /// If successful, the optimized Wasm binary is written to `dest_wasm`.
-    pub fn optimize(
-        &self,
-        dest_wasm: &PathBuf,
-        contract_artifact_name: &String,
-    ) -> Result<()> {
-        // We'll create a temporary file for our optimized Wasm binary. Note that we'll
-        // later overwrite this with the original path of the Wasm binary.
-        let mut dest_optimized = dest_wasm.clone();
-        dest_optimized.set_file_name(format!("{contract_artifact_name}-opt.wasm"));
-
+    pub fn optimize(&self, original_wasm: &PathBuf, dest_wasm: &PathBuf) -> Result<()> {
         tracing::debug!(
             "Optimization level passed to wasm-opt: {}",
             self.optimization_level
@@ -82,17 +73,15 @@ impl WasmOptHandler {
             // memory-packing pre-pass.
             .zero_filled_memory(true)
             .debug_info(self.keep_debug_symbols)
-            .run(dest_wasm, &dest_optimized)?;
+            .run(original_wasm, dest_wasm)?;
 
-        if !dest_optimized.exists() {
+        if !dest_wasm.exists() {
             return Err(anyhow::anyhow!(
                 "Optimization failed, optimized wasm output file `{}` not found.",
-                dest_optimized.display()
+                dest_wasm.display()
             ))
         }
 
-        // Overwrite existing destination wasm file with the optimised version
-        std::fs::rename(&dest_optimized, dest_wasm)?;
         Ok(())
     }
 }