diff --git a/CHANGELOG.md b/CHANGELOG.md
index 77310e2..d14e24e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,29 @@
 # Changelog
 
+## 0.4.0
+
+**Release date:** 2021-01-22
+
+This prerelease reforms the update strategy types API in a backwards
+compatible manner.
+
+In addition, it comes with two new argument flags introduced to support
+configuring the QPS (`--kube-api-qps`) and burst (`--kube-api-burst`)
+while communicating with the Kubernetes API server.
+
+The `LocalObjectReference` from the Kubernetes core has been replaced
+with our own, making the `name` a required field. The impact of this
+should be limited to direct API consumers only, as the field was
+already required by controller logic.
+
+Improvements:
+* Update fluxcd/pkg/runtime to v0.8.0
+  [#98](https://github.com/fluxcd/image-automation-controller/pull/98)
+* Reform update strategy types
+  [#95](https://github.com/fluxcd/kustomize-controller/pull/95)
+* Add API reference for ImageUpdateAutomation
+  [#94](https://github.com/fluxcd/image-automation-controller/pull/94)  
+
 ## 0.3.1
 
 **Release date:** 2021-01-18
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 7c76213..c89fec1 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -5,4 +5,4 @@ resources:
 images:
 - name: fluxcd/image-automation-controller
   newName: fluxcd/image-automation-controller
-  newTag: v0.3.1
+  newTag: v0.4.0
diff --git a/go.mod b/go.mod
index 89a2f55..59f8e18 100644
--- a/go.mod
+++ b/go.mod
@@ -8,7 +8,7 @@ replace github.com/fluxcd/image-automation-controller/api => ./api
 replace gopkg.in/yaml.v3 => gopkg.in/yaml.v3 v3.0.0-20200313102051-9f266ea9e77c
 
 require (
-	github.com/fluxcd/image-automation-controller/api v0.3.1
+	github.com/fluxcd/image-automation-controller/api v0.4.0
 	github.com/fluxcd/image-reflector-controller/api v0.4.0
 	github.com/fluxcd/pkg/apis/meta v0.7.0
 	github.com/fluxcd/pkg/gittestserver v0.1.0