diff --git a/test/functional/test_framework/test_framework.py b/test/functional/test_framework/test_framework.py
index 66a23b443c2..d4dc90a517a 100755
--- a/test/functional/test_framework/test_framework.py
+++ b/test/functional/test_framework/test_framework.py
@@ -228,6 +228,23 @@ class BitcoinTestFramework(metaclass=BitcoinTestMetaClass):
 
         PortSeed.n = self.options.port_seed
 
+    def set_binary_paths(self):
+        """Update self.options with the paths of all binaries from environment variables or their default values"""
+
+        binaries = {
+            "bitcoind": ("bitcoind", "BITCOIND"),
+            "bitcoin-cli": ("bitcoincli", "BITCOINCLI"),
+            "bitcoin-util": ("bitcoinutil", "BITCOINUTIL"),
+            "bitcoin-wallet": ("bitcoinwallet", "BITCOINWALLET"),
+        }
+        for binary, [attribute_name, env_variable_name] in binaries.items():
+            default_filename = os.path.join(
+                self.config["environment"]["BUILDDIR"],
+                "src",
+                binary + self.config["environment"]["EXEEXT"],
+            )
+            setattr(self.options, attribute_name, os.getenv(env_variable_name, default=default_filename))
+
     def setup(self):
         """Call this method to start up the test framework object with options set."""
 
@@ -237,24 +254,7 @@ class BitcoinTestFramework(metaclass=BitcoinTestMetaClass):
 
         config = self.config
 
-        fname_bitcoind = os.path.join(
-            config["environment"]["BUILDDIR"],
-            "src",
-            "bitcoind" + config["environment"]["EXEEXT"],
-        )
-        fname_bitcoincli = os.path.join(
-            config["environment"]["BUILDDIR"],
-            "src",
-            "bitcoin-cli" + config["environment"]["EXEEXT"],
-        )
-        fname_bitcoinutil = os.path.join(
-            config["environment"]["BUILDDIR"],
-            "src",
-            "bitcoin-util" + config["environment"]["EXEEXT"],
-        )
-        self.options.bitcoind = os.getenv("BITCOIND", default=fname_bitcoind)
-        self.options.bitcoincli = os.getenv("BITCOINCLI", default=fname_bitcoincli)
-        self.options.bitcoinutil = os.getenv("BITCOINUTIL", default=fname_bitcoinutil)
+        self.set_binary_paths()
 
         os.environ['PATH'] = os.pathsep.join([
             os.path.join(config['environment']['BUILDDIR'], 'src'),
diff --git a/test/functional/tool_wallet.py b/test/functional/tool_wallet.py
index a888f93b03e..95999649b43 100755
--- a/test/functional/tool_wallet.py
+++ b/test/functional/tool_wallet.py
@@ -32,12 +32,11 @@ class ToolWalletTest(BitcoinTestFramework):
         self.skip_if_no_wallet_tool()
 
     def bitcoin_wallet_process(self, *args):
-        binary = self.config["environment"]["BUILDDIR"] + '/src/bitcoin-wallet' + self.config["environment"]["EXEEXT"]
         default_args = ['-datadir={}'.format(self.nodes[0].datadir), '-chain=%s' % self.chain]
         if not self.options.descriptors and 'create' in args:
             default_args.append('-legacy')
 
-        return subprocess.Popen([binary] + default_args + list(args), stdin=subprocess.PIPE, stdout=subprocess.PIPE, stderr=subprocess.PIPE, text=True)
+        return subprocess.Popen([self.options.bitcoinwallet] + default_args + list(args), stdin=subprocess.PIPE, stdout=subprocess.PIPE, stderr=subprocess.PIPE, text=True)
 
     def assert_raises_tool_error(self, error, *args):
         p = self.bitcoin_wallet_process(*args)