diff --git a/components/supervisor/openssh/BUILD.yaml b/components/supervisor/openssh/BUILD.yaml
index 23a9348033e2fa..2a0945eee48267 100644
--- a/components/supervisor/openssh/BUILD.yaml
+++ b/components/supervisor/openssh/BUILD.yaml
@@ -9,7 +9,5 @@ packages:
         - ["rm", "-rf", "components-supervisor-openssh--docker-build"]
   - name: docker-build
     type: docker
-    srcs:
-      - "*.patch"
     config:
       dockerfile: leeway.Dockerfile
diff --git a/components/supervisor/openssh/leeway.Dockerfile b/components/supervisor/openssh/leeway.Dockerfile
index 302c64871c9989..27030c2f46b705 100644
--- a/components/supervisor/openssh/leeway.Dockerfile
+++ b/components/supervisor/openssh/leeway.Dockerfile
@@ -54,12 +54,10 @@ RUN ./configure \
     --with-privsep-user=nobody \
     --with-ssl-engine
 
-COPY supervisorenv.patch .
 ENV aports=https://raw.githubusercontent.com/alpinelinux/aports/master/main/openssh
 RUN curl -fsSL \
     "${aports}/{avoid-redefined-warnings-when-building-with-utmps,disable-forwarding-by-default,fix-utmp,fix-verify-dns-segfault,gss-serv.c,sftp-interactive}.patch" \
     | patch -p1
-RUN cat supervisorenv.patch | patch -p1
 RUN make install-nosysconf exec_prefix=/openssh
 
 RUN TEST_SSH_UNSAFE_PERMISSIONS=1 \
diff --git a/components/supervisor/openssh/supervisorenv.patch b/components/supervisor/openssh/supervisorenv.patch
deleted file mode 100644
index dad1babcd94cca..00000000000000
--- a/components/supervisor/openssh/supervisorenv.patch
+++ /dev/null
@@ -1,14 +0,0 @@
---- a/session.c	2021-10-29 07:07:35.794323753 +0000
-+++ b/session.c	2021-10-29 07:23:07.420640891 +0000
-@@ -1126,6 +1126,11 @@
- 		    options.permit_user_env_allowlist);
- 	}
-
-+	snprintf(buf, sizeof buf, "%.200s/%s/supervisor_env",
-+		    pw->pw_dir, _PATH_SSH_USER_DIR);
-+		read_environment_file(&env, &envsize, buf,
-+		    options.permit_user_env_allowlist);
-+
- #ifdef USE_PAM
- 	/*
- 	 * Pull in any environment variables that may have
diff --git a/components/supervisor/pkg/supervisor/ssh.go b/components/supervisor/pkg/supervisor/ssh.go
index 9c19f434388392..d63a9a021ad700 100644
--- a/components/supervisor/pkg/supervisor/ssh.go
+++ b/components/supervisor/pkg/supervisor/ssh.go
@@ -33,9 +33,9 @@ func newSSHServer(ctx context.Context, cfg *Config, envvars []string) (*sshServe
 			return nil, xerrors.Errorf("unexpected error creating SSH key: %w", err)
 		}
 	}
-	err = writeSSHEnv(cfg, envvars)
+	err = ensureSSHDir(cfg)
 	if err != nil {
-		return nil, xerrors.Errorf("unexpected error creating SSH env: %w", err)
+		return nil, xerrors.Errorf("unexpected error creating SSH dir: %w", err)
 	}
 
 	return &sshServer{
@@ -103,6 +103,18 @@ func (s *sshServer) handleConn(ctx context.Context, conn net.Conn) {
 		"-oLogLevel DEBUG", // enabled DEBUG mode by default
 	}
 
+	envs := make([]string, 0)
+	for _, env := range s.envvars {
+		s := strings.SplitN(env, "=", 2)
+		if len(s) != 2 {
+			continue
+		}
+		envs = append(envs, fmt.Sprintf("%s=%s", s[0], fmt.Sprintf("\"%s\"", strings.ReplaceAll(s[1], "\"", "\\\""))))
+	}
+	if len(envs) > 0 {
+		args = append(args, fmt.Sprintf("-oSetEnv %s", strings.Join(envs, " ")))
+	}
+
 	socketFD, err := conn.(*net.TCPConn).File()
 	if err != nil {
 		log.WithError(err).Error("cannot start SSH server")
@@ -189,7 +201,7 @@ func prepareSSHKey(ctx context.Context, sshkey string) error {
 	return nil
 }
 
-func writeSSHEnv(cfg *Config, envvars []string) error {
+func ensureSSHDir(cfg *Config) error {
 	home := "/home/gitpod"
 
 	d := filepath.Join(home, ".ssh")
@@ -197,13 +209,6 @@ func writeSSHEnv(cfg *Config, envvars []string) error {
 	if err != nil {
 		return xerrors.Errorf("cannot create $HOME/.ssh: %w", err)
 	}
-
-	fn := filepath.Join(d, "supervisor_env")
-	err = os.WriteFile(fn, []byte(strings.Join(envvars, "\n")), 0o644)
-	if err != nil {
-		return xerrors.Errorf("cannot write %s: %w", fn, err)
-	}
-
 	_ = exec.Command("chown", "-R", fmt.Sprintf("%d:%d", gitpodUID, gitpodGID), d).Run()
 
 	return nil