diff --git a/.github/workflows/codegen-models.yml b/.github/workflows/codegen-models.yml
index ad2cbe46f..05d739a33 100644
--- a/.github/workflows/codegen-models.yml
+++ b/.github/workflows/codegen-models.yml
@@ -35,7 +35,7 @@ jobs:
       - name: Check for changes
         id: changes
         run: |
-          if git diff --quiet packages/config/src/cli-registry.generated.ts packages/sdk-py/agent_relay/models.py packages/sdk-py/agent_relay/__init__.py; then
+          if git diff --quiet packages/config/src/cli-registry.generated.ts packages/sdk-py/src/agent_relay/models.py; then
             echo "changed=false" >> $GITHUB_OUTPUT
           else
             echo "changed=true" >> $GITHUB_OUTPUT
@@ -46,7 +46,7 @@ jobs:
         run: |
           git config --local user.email "github-actions[bot]@users.noreply.github.com"
           git config --local user.name "github-actions[bot]"
-          git add packages/config/src/cli-registry.generated.ts packages/sdk-py/agent_relay/models.py packages/sdk-py/agent_relay/__init__.py
+          git add packages/config/src/cli-registry.generated.ts packages/sdk-py/src/agent_relay/models.py
           git commit -m "chore: regenerate models from cli-registry.yaml [skip ci]"
           git push
 
diff --git a/package.json b/package.json
index 2bff9eff2..0d4e66456 100644
--- a/package.json
+++ b/package.json
@@ -173,7 +173,7 @@
     ],
     "packages/shared/cli-registry.yaml": [
       "npm run codegen:models",
-      "git add packages/config/src/cli-registry.generated.ts packages/sdk-py/agent_relay/models.py packages/sdk-py/agent_relay/__init__.py"
+      "git add packages/config/src/cli-registry.generated.ts packages/sdk-py/src/agent_relay/models.py"
     ]
   },
   "keywords": [
diff --git a/packages/shared/codegen-py.mjs b/packages/shared/codegen-py.mjs
index 2beb8e005..3a9a3e29e 100644
--- a/packages/shared/codegen-py.mjs
+++ b/packages/shared/codegen-py.mjs
@@ -3,7 +3,7 @@
  * Generate Python models from cli-registry.yaml
  *
  * Usage: node codegen-py.mjs
- * Output: ../sdk-py/agent_relay/models.py
+ * Output: ../sdk-py/src/agent_relay/models.py
  */
 
 import { readFileSync, writeFileSync, mkdirSync, existsSync } from 'node:fs';
@@ -13,7 +13,7 @@ import { fileURLToPath } from 'node:url';
 
 const __dirname = dirname(fileURLToPath(import.meta.url));
 const registryPath = join(__dirname, 'cli-registry.yaml');
-const outputDir = join(__dirname, '../sdk-py/agent_relay');
+const outputDir = join(__dirname, '../sdk-py/src/agent_relay');
 const outputPath = join(outputDir, 'models.py');
 
 // Create output directory if it doesn't exist
@@ -184,32 +184,3 @@ output += `}
 
 writeFileSync(outputPath, output);
 console.log(`Generated ${outputPath}`);
-
-// Update __init__.py with new exports
-const initPath = join(outputDir, '__init__.py');
-writeFileSync(
-  initPath,
-  `"""Agent Relay Python SDK."""
-
-from .models import (
-    CLIs,
-    CLIVersions,
-    CLI_REGISTRY,
-    DEFAULT_MODELS,
-    Models,
-    ModelOptions,
-    SwarmPatterns,
-)
-
-__all__ = [
-    "CLIs",
-    "CLIVersions",
-    "CLI_REGISTRY",
-    "DEFAULT_MODELS",
-    "Models",
-    "ModelOptions",
-    "SwarmPatterns",
-]
-`
-);
-console.log(`Generated ${initPath}`);