diff --git a/VERSION b/VERSION
index d94039192..70c9c3a71 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-v0.26.1-dev
+v0.26.1
\ No newline at end of file
diff --git a/config/default/manager_image_patch.yaml b/config/default/manager_image_patch.yaml
index ec7f5deee..6f08ced14 100644
--- a/config/default/manager_image_patch.yaml
+++ b/config/default/manager_image_patch.yaml
@@ -8,5 +8,5 @@ spec:
     spec:
       containers:
         # Change the value of image field below to your controller image URL
-        - image: europe-docker.pkg.dev/gardener-project/public/gardener/etcd-druid:v0.26.0-dev
+        - image: europe-docker.pkg.dev/gardener-project/public/gardener/etcd-druid:v0.26.1-dev
           name: druid