diff --git a/docker/py/Dockerfile b/docker/py/Dockerfile
index 7f635672..fc8e8250 100644
--- a/docker/py/Dockerfile
+++ b/docker/py/Dockerfile
@@ -29,10 +29,6 @@ RUN apt-get update && apt-get install -yq --no-install-recommends \
     python-dev \
     unzip \
     vim && \
-    wget https://github.com/cdr/code-server/releases/download/v3.6.2/code-server_3.6.2_amd64.deb && \
-    dpkg -i ./code-server*.deb && \
-    rm code-server_3.6.2_amd64.deb && \
-    apt-get clean && \
     rm -rf /var/lib/apt/lists/* && \
     ln -s /usr/lib/x86_64-linux-musl/libc.so /lib/libc.musl-x86_64.so.1
 
@@ -49,12 +45,9 @@ RUN python3 -m pip install --no-cache -U pip && \
     python3 -m pip install --no-cache -r /tmp/requirements.txt && \
     jupyter labextension install --no-build @jupyterlab/toc && \
     jupyter labextension install --no-build jupyterlab-topbar-extension jupyterlab-system-monitor && \
-    jupyter serverextension enable --py jupyter_server_proxy && \
-    jupyter labextension install --no-build @jupyterlab/server-proxy && \
     jupyter lab build && \
     jupyter labextension list && \
     npm cache clean --force && \
-    code-server --install-extension ms-python.python && \
     rm -rf /home/${NB_USER}/.cache
 
 # fix https://github.com/SwissDataScienceCenter/renku-jupyter/issues/14
diff --git a/docker/py/requirements.txt b/docker/py/requirements.txt
index 218c4d7a..93844291 100644
--- a/docker/py/requirements.txt
+++ b/docker/py/requirements.txt
@@ -1,8 +1,9 @@
-git+https://github.com/betatim/vscode-binder
 jupyterhub==1.1.0
 jupyterlab-git==0.20.0
+jupyterlab_server~=1.0.0
 jupyter-server-proxy==1.5.0
 nbresuse==0.3.6
+nbclient<0.5.1
 papermill==2.1.3
 pipx>=0.15.0.0
 powerline-shell==0.7.0
diff --git a/scripts/install-vscode.sh b/scripts/install-vscode.sh
new file mode 100644
index 00000000..a17e3c7b
--- /dev/null
+++ b/scripts/install-vscode.sh
@@ -0,0 +1,15 @@
+#!/bin/sh
+
+VSCODE_VERSION=${"$VSCODE_VERSION":-"3.6.2"}
+
+# code-server installation
+wget https://github.com/cdr/code-server/releases/download/v${VSCODE_VERSION}/code-server_3.6.2_amd64.deb
+dpkg -i ./code-server*.deb
+rm code-server_3.6.2_amd64.deb
+apt-get clean
+code-server --install-extension ms-python.python
+
+# Jupyter support
+pip install git+https://github.com/betatim/vscode-binder
+jupyter serverextension enable --py jupyter_server_proxy && \
+jupyter labextension install --no-build @jupyterlab/server-proxy