diff --git a/thirdparty/CMakeLists.txt b/thirdparty/CMakeLists.txt
index 9b06ee3edf8723..79e85f2f444a5a 100644
--- a/thirdparty/CMakeLists.txt
+++ b/thirdparty/CMakeLists.txt
@@ -32,8 +32,11 @@ if(ENABLE_SYSTEM_PUGIXML)
     add_library(pugixml::static ALIAS pugixml)
 else()
     function(ie_build_pugixml)
-        set(BUILD_SHARED_LIBS OFF)
-        add_subdirectory(pugixml EXCLUDE_FROM_ALL)
+        function(ie_build_pugixml_static)
+            set(BUILD_SHARED_LIBS OFF)
+            add_subdirectory(pugixml EXCLUDE_FROM_ALL)
+        endfunction()
+        ie_build_pugixml_static()
         set_property(TARGET pugixml-static PROPERTY EXPORT_NAME pugixml)
         openvino_developer_export_targets(COMPONENT openvino_common TARGETS pugixml::static)
         ov_install_static_lib(pugixml-static openvino_common)