diff --git a/.github/workflows/actions.yml b/.github/workflows/actions.yml
index 81c7e4f5ea57..88c5ce49893c 100644
--- a/.github/workflows/actions.yml
+++ b/.github/workflows/actions.yml
@@ -44,7 +44,7 @@ jobs:
         uses: actions/cache@v4
         with:
           path: ${{ steps.pip-cache.outputs.dir }}
-          key: ${{ runner.os }}-pip-${{ hashFiles('setup.py') }}-${{ hashFiles('requirements.txt') }}
+          key: ${{ runner.os }}-pip-${{ hashFiles('pyproject.toml') }}-${{ hashFiles('requirements.txt') }}
       - name: Install dependencies
         run: |
           pip install -r requirements.txt --progress-bar off --upgrade
@@ -115,7 +115,7 @@ jobs:
         uses: actions/cache@v4
         with:
           path: ${{ steps.pip-cache.outputs.dir }}
-          key: ${{ runner.os }}-pip-${{ hashFiles('setup.py') }}-${{ hashFiles('requirements.txt') }}
+          key: ${{ runner.os }}-pip-${{ hashFiles('pyproject.toml') }}-${{ hashFiles('requirements.txt') }}
       - name: Install dependencies
         run: |
           pip install -r requirements.txt --progress-bar off --upgrade
diff --git a/.github/workflows/nightly.yml b/.github/workflows/nightly.yml
index 5bf954f48913..0a6ae5cb7a60 100644
--- a/.github/workflows/nightly.yml
+++ b/.github/workflows/nightly.yml
@@ -35,7 +35,7 @@ jobs:
         uses: actions/cache@v4
         with:
           path: ${{ steps.pip-cache.outputs.dir }}
-          key: ${{ runner.os }}-pip-${{ hashFiles('setup.py') }}-${{ hashFiles('requirements.txt') }}
+          key: ${{ runner.os }}-pip-${{ hashFiles('pyproject.toml') }}-${{ hashFiles('requirements.txt') }}
       - name: Install dependencies
         run: |
           pip install -r requirements.txt --progress-bar off --upgrade
@@ -75,7 +75,7 @@ jobs:
         uses: actions/cache@v4
         with:
           path: ${{ steps.pip-cache.outputs.dir }}
-          key: ${{ runner.os }}-pip-${{ hashFiles('setup.py') }}-${{ hashFiles('requirements.txt') }}
+          key: ${{ runner.os }}-pip-${{ hashFiles('pyproject.toml') }}-${{ hashFiles('requirements.txt') }}
       - name: Install dependencies
         run: |
           pip install -r requirements.txt --progress-bar off --upgrade
diff --git a/pip_build.py b/pip_build.py
index 66e7578eee25..f0022e415cd6 100644
--- a/pip_build.py
+++ b/pip_build.py
@@ -29,22 +29,20 @@
 package = "keras"
 build_directory = "tmp_build_dir"
 dist_directory = "dist"
-to_copy = ["setup.py", "README.md"]
+to_copy = ["pyproject.toml", "README.md"]
 
 
 def export_version_string(version, is_nightly=False, rc_index=None):
     """Export Version and Package Name."""
     if is_nightly:
         date = datetime.datetime.now()
-        version += f".dev{date.strftime('%Y%m%d%H')}"
-        # Replaces `name="keras"` string in `setup.py` with `keras-nightly`
-        with open("setup.py") as f:
-            setup_contents = f.read()
-        with open("setup.py", "w") as f:
-            setup_contents = setup_contents.replace(
-                'name="keras"', 'name="keras-nightly"'
-            )
-            f.write(setup_contents)
+        version += f".dev{date:%Y%m%d%H}"
+        # Update `name = "keras"` with "keras-nightly"
+        pyproj_pth = pathlib.Path("pyproject.toml")
+        pyproj_str = pyproj_pth.read_text().replace(
+            'name = "keras"', 'name = "keras-nightly"'
+        )
+        pyproj_pth.write_text(pyproj_str)
     elif rc_index is not None:
         version += "rc" + str(rc_index)
 
diff --git a/pyproject.toml b/pyproject.toml
index e7dfee5fa761..12c2de3353a2 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,5 +1,55 @@
+[build-system]
+requires = ["setuptools >=61.0"]
+build-backend = "setuptools.build_meta"
+
+[project]
+name = "keras"
+authors = [
+    {name = "Keras team", email = "keras-users@googlegroups.com"},
+]
+description = "Multi-backend Keras"
+readme = "README.md"
+requires-python = ">=3.9"
+license = {text = "Apache License 2.0"}
+dynamic = ["version"]
+classifiers = [
+    "Development Status :: 4 - Beta",
+    "Programming Language :: Python :: 3",
+    "Programming Language :: Python :: 3.9",
+    "Programming Language :: Python :: 3.10",
+    "Programming Language :: Python :: 3.11",
+    "Programming Language :: Python :: 3 :: Only",
+    "Operating System :: Unix",
+    "Operating System :: MacOS",
+    "Intended Audience :: Science/Research",
+    "Topic :: Scientific/Engineering",
+    "Topic :: Software Development",
+]
+dependencies = [
+    "absl-py",
+    "numpy",
+    "rich",
+    "namex",
+    "h5py",
+    "optree",
+    "ml-dtypes",
+    "packaging",
+]
+# Run also: pip install -r requirements.txt
+
+[project.urls]
+Home = "https://keras.io/"
+Repository = "https://github.com/keras-team/keras"
+
+[tool.setuptools.dynamic]
+version = {attr = "keras.src.version.__version__"}
+
+[tool.setuptools.packages.find]
+include = ["keras", "keras.*"]
+
 [tool.black]
 line-length = 80
+target-version = []
 
 # black needs this to be a regex
 # to add more exclude expressions
diff --git a/setup.py b/setup.py
deleted file mode 100644
index 6d8096a0b856..000000000000
--- a/setup.py
+++ /dev/null
@@ -1,67 +0,0 @@
-"""Setup script."""
-
-import os
-import pathlib
-
-from setuptools import find_packages
-from setuptools import setup
-
-
-def read(rel_path):
-    here = os.path.abspath(os.path.dirname(__file__))
-    with open(os.path.join(here, rel_path)) as fp:
-        return fp.read()
-
-
-def get_version(rel_path):
-    for line in read(rel_path).splitlines():
-        if line.startswith("__version__"):
-            delim = '"' if '"' in line else "'"
-            return line.split(delim)[1]
-    raise RuntimeError("Unable to find version string.")
-
-
-HERE = pathlib.Path(__file__).parent
-README = (HERE / "README.md").read_text()
-VERSION = get_version("keras/src/version.py")
-
-setup(
-    name="keras",
-    description="Multi-backend Keras.",
-    long_description_content_type="text/markdown",
-    long_description=README,
-    version=VERSION,
-    url="https://github.com/keras-team/keras",
-    author="Keras team",
-    author_email="keras-users@googlegroups.com",
-    license="Apache License 2.0",
-    install_requires=[
-        "absl-py",
-        "numpy",
-        "rich",
-        "namex",
-        "h5py",
-        "optree",
-        "ml-dtypes",
-        "packaging",
-    ],
-    # Supported Python versions
-    python_requires=">=3.9",
-    classifiers=[
-        "Development Status :: 4 - Beta",
-        "Programming Language :: Python :: 3",
-        "Programming Language :: Python :: 3.9",
-        "Programming Language :: Python :: 3.10",
-        "Programming Language :: Python :: 3.11",
-        "Programming Language :: Python :: 3 :: Only",
-        "Operating System :: Unix",
-        "Operating System :: MacOS",
-        "Intended Audience :: Science/Research",
-        "Topic :: Scientific/Engineering",
-        "Topic :: Software Development",
-    ],
-    packages=find_packages(
-        include=("keras", "keras.*"),
-        exclude=("*_test.py", "benchmarks"),
-    ),
-)