diff --git a/pkgs/development/python-modules/azure-core/default.nix b/pkgs/development/python-modules/azure-core/default.nix
index 2db4ac2208fb..5237130f59f8 100644
--- a/pkgs/development/python-modules/azure-core/default.nix
+++ b/pkgs/development/python-modules/azure-core/default.nix
@@ -7,7 +7,6 @@
 , aiohttp
 , flask
 , mock
-, msrest
 , pytest
 , pytest-asyncio
 , pytest-trio
@@ -39,7 +38,6 @@ buildPythonPackage rec {
     aiohttp
     flask
     mock
-    msrest
     pytest
     pytest-trio
     pytest-asyncio
@@ -78,6 +76,11 @@ buildPythonPackage rec {
     "tests/testserver_tests/"
     # requires missing pytest plugin
     "tests/async_tests/test_rest_asyncio_transport.py"
+    # needs msrest, which cannot be included in checkInputs due to circular dependency new in msrest 0.7.1
+    # azure-core needs msrest which needs azure-core
+    "tests/test_polling.py"
+    "tests/async_tests/test_base_polling_async.py"
+    "tests/async_tests/test_polling_async.py"
   ];
 
   meta = with lib; {
diff --git a/pkgs/development/python-modules/msrest/default.nix b/pkgs/development/python-modules/msrest/default.nix
index da130f289fda..c22dad7130a5 100644
--- a/pkgs/development/python-modules/msrest/default.nix
+++ b/pkgs/development/python-modules/msrest/default.nix
@@ -1,6 +1,7 @@
 { lib
 , aiodns
 , aiohttp
+, azure-core
 , buildPythonPackage
 , certifi
 , fetchFromGitHub
@@ -16,7 +17,7 @@
 
 buildPythonPackage rec {
   pname = "msrest";
-  version = "0.6.21";
+  version = "0.7.1";
   format = "setuptools";
 
   disabled = pythonOlder "3.7";
@@ -24,11 +25,13 @@ buildPythonPackage rec {
   src = fetchFromGitHub {
     owner = "Azure";
     repo = "msrest-for-python";
-    rev = "v${version}";
-    hash = "sha256-IlBwlVQ/v+vJmCWNbFZKGL6a9K09z4AYrPm3kwaA/nI=";
+    # no tag for 0.7.1
+    rev = "2d8fd04f68a124d0f3df7b81584accc3270b1afc";
+    hash = "sha256-1EXXXflhDeU+erdI+NsWxSX76ooDTl3+MyQwRzm2xV0=";
   };
 
   propagatedBuildInputs = [
+    azure-core
     aiodns
     aiohttp
     certifi
diff --git a/pkgs/development/python-modules/vsts/default.nix b/pkgs/development/python-modules/vsts/default.nix
index 8095ccf98f0c..a7d676ac2c5d 100644
--- a/pkgs/development/python-modules/vsts/default.nix
+++ b/pkgs/development/python-modules/vsts/default.nix
@@ -16,6 +16,10 @@ buildPythonPackage rec {
 
   propagatedBuildInputs = [ msrest ];
 
+  postPatch = ''
+    substituteInPlace setup.py --replace "msrest>=0.6.0,<0.7.0" "msrest"
+  '';
+
   # Tests are highly impure
   checkPhase = ''
     ${python.interpreter} -c 'import vsts.version; print(vsts.version.VERSION)'