diff --git a/level_zero/core/source/module/module_imp.cpp b/level_zero/core/source/module/module_imp.cpp
index 5ac883424a..5d94ded48d 100644
--- a/level_zero/core/source/module/module_imp.cpp
+++ b/level_zero/core/source/module/module_imp.cpp
@@ -35,6 +35,7 @@ namespace L0 {
 
 namespace BuildOptions {
 NEO::ConstStringRef optDisable = "-ze-opt-disable";
+NEO::ConstStringRef optLevel = "-ze-opt-level";
 NEO::ConstStringRef greaterThan4GbRequired = "-ze-opt-greater-than-4GB-buffer-required";
 NEO::ConstStringRef hasBufferOffsetArg = "-ze-intel-has-buffer-offset-arg";
 NEO::ConstStringRef debugKernelEnable = "-ze-kernel-debug-enable";
@@ -422,6 +423,7 @@ void ModuleImp::createBuildOptions(const char *pBuildFlags, std::string &apiOpti
 
         apiOptions = pBuildFlags;
         moveBuildOption(apiOptions, apiOptions, NEO::CompilerOptions::optDisable, BuildOptions::optDisable);
+        moveBuildOption(apiOptions, apiOptions, NEO::CompilerOptions::optLevel, BuildOptions::optLevel);
         moveBuildOption(internalBuildOptions, apiOptions, NEO::CompilerOptions::greaterThan4gbBuffersRequired, BuildOptions::greaterThan4GbRequired);
         moveBuildOption(internalBuildOptions, apiOptions, NEO::CompilerOptions::allowZebin, NEO::CompilerOptions::allowZebin);
 
@@ -698,13 +700,25 @@ ze_result_t ModuleImp::performDynamicLink(uint32_t numModules,
 }
 
 bool moveBuildOption(std::string &dstOptionsSet, std::string &srcOptionSet, NEO::ConstStringRef dstOptionName, NEO::ConstStringRef srcOptionName) {
+    const char optDelim = ' ';
+    const char valDelim = '=';
+
     auto optInSrcPos = srcOptionSet.find(srcOptionName.begin());
     if (std::string::npos == optInSrcPos) {
         return false;
     }
 
-    srcOptionSet.erase(optInSrcPos, srcOptionName.length());
-    NEO::CompilerOptions::concatenateAppend(dstOptionsSet, dstOptionName);
+    std::string dstOptionStr(dstOptionName);
+    auto optInSrcEndPos = srcOptionSet.find(optDelim, optInSrcPos);
+    if (srcOptionName == BuildOptions::optLevel) {
+        auto valInSrcPos = srcOptionSet.find(valDelim, optInSrcPos);
+        if (std::string::npos == valInSrcPos) {
+            return false;
+        }
+        dstOptionStr += srcOptionSet.substr(valInSrcPos + 1, optInSrcEndPos);
+    }
+    srcOptionSet.erase(optInSrcPos, (optInSrcEndPos - optInSrcPos));
+    NEO::CompilerOptions::concatenateAppend(dstOptionsSet, dstOptionStr);
     return true;
 }
 
diff --git a/level_zero/core/source/module/module_imp.h b/level_zero/core/source/module/module_imp.h
index 9408ac24e6..0663a83706 100644
--- a/level_zero/core/source/module/module_imp.h
+++ b/level_zero/core/source/module/module_imp.h
@@ -24,6 +24,7 @@ namespace L0 {
 
 namespace BuildOptions {
 extern NEO::ConstStringRef optDisable;
+extern NEO::ConstStringRef optLevel;
 extern NEO::ConstStringRef greaterThan4GbRequired;
 extern NEO::ConstStringRef hasBufferOffsetArg;
 extern NEO::ConstStringRef debugKernelEnable;
diff --git a/level_zero/core/test/unit_tests/sources/module/test_module.cpp b/level_zero/core/test/unit_tests/sources/module/test_module.cpp
index af86a90251..9ae2e3ea62 100644
--- a/level_zero/core/test/unit_tests/sources/module/test_module.cpp
+++ b/level_zero/core/test/unit_tests/sources/module/test_module.cpp
@@ -1230,6 +1230,27 @@ TEST(BuildOptions, givenSrcOptionNameInSrcNamesWhenMovingBuildOptionsThenOptionI
     EXPECT_EQ(std::string::npos, srcNames.find(NEO::CompilerOptions::optDisable.str()));
 }
 
+TEST(BuildOptions, givenSrcOptLevelInSrcNamesWhenMovingBuildOptionsThenOptionIsRemovedFromSrcNamesAndTranslatedOptionsStoredInDstNames) {
+    std::string srcNames = NEO::CompilerOptions::concatenate(NEO::CompilerOptions::fastRelaxedMath, BuildOptions::optLevel);
+    srcNames += "=2";
+    std::string dstNames;
+
+    auto result = moveBuildOption(dstNames, srcNames, NEO::CompilerOptions::optLevel, BuildOptions::optLevel);
+    EXPECT_TRUE(result);
+
+    EXPECT_EQ(NEO::CompilerOptions::optLevel.str() + std::string("2"), dstNames);
+    EXPECT_EQ(std::string::npos, srcNames.find(BuildOptions::optLevel.str()));
+    EXPECT_EQ(std::string::npos, srcNames.find(std::string("=2")));
+}
+
+TEST(BuildOptions, givenSrcOptLevelWithoutLevelIntegerInSrcNamesWhenMovingBuildOptionsThenFalseIsReturned) {
+    std::string srcNames = NEO::CompilerOptions::concatenate(NEO::CompilerOptions::fastRelaxedMath, BuildOptions::optLevel);
+    std::string dstNames;
+
+    auto result = moveBuildOption(dstNames, srcNames, NEO::CompilerOptions::optLevel, BuildOptions::optLevel);
+    EXPECT_FALSE(result);
+}
+
 TEST_F(ModuleTest, givenInternalOptionsWhenBindlessEnabledThenBindlesOptionsPassed) {
     DebugManagerStateRestore restorer;
     DebugManager.flags.UseBindlessMode.set(1);
diff --git a/shared/source/compiler_interface/compiler_options/compiler_options_base.h b/shared/source/compiler_interface/compiler_options/compiler_options_base.h
index d4a0146253..a92bd9a99d 100644
--- a/shared/source/compiler_interface/compiler_options/compiler_options_base.h
+++ b/shared/source/compiler_interface/compiler_options/compiler_options_base.h
@@ -32,6 +32,7 @@ static constexpr ConstStringRef forceEmuInt32DivRem = "-cl-intel-force-emu-int32
 static constexpr ConstStringRef forceEmuInt32DivRemSP = "-cl-intel-force-emu-sp-int32divrem";
 static constexpr ConstStringRef allowZebin = "-allow-zebin";
 static constexpr ConstStringRef enableImageSupport = "-D__IMAGE_SUPPORT__=1";
+static constexpr ConstStringRef optLevel = "-ze-opt-level=O";
 
 constexpr size_t nullterminateSize = 1U;
 constexpr size_t spaceSeparatorSize = 1U;