diff --git a/CHANGELOG.md b/CHANGELOG.md
index 195f098b..b7d8edb7 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,22 @@
 
 All notable changes to this project are documented in this file.
 
+## 0.25.7
+
+**Release date:** 2022-06-22
+
+This prerelease comes with an improvement in the SSH managed transport error
+messages related to known hosts check and removes a deadlock in the SSH smart
+subtransport.
+
+Fixes:
+- libgit2: remove deadlock
+  [#785](https://github.com/fluxcd/source-controller/pull/785)
+
+Improvements:
+- libgit2: improve known_hosts error messages
+  [#783](https://github.com/fluxcd/source-controller/pull/783)
+
 ## 0.25.6
 
 **Release date:** 2022-06-14
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 97802238..36505228 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -6,4 +6,4 @@ resources:
 images:
 - name: fluxcd/source-controller
   newName: fluxcd/source-controller
-  newTag: v0.25.6
+  newTag: v0.25.7
diff --git a/go.mod b/go.mod
index d91b6cae..8b267c57 100644
--- a/go.mod
+++ b/go.mod
@@ -32,7 +32,7 @@ require (
 	github.com/fluxcd/pkg/testserver v0.2.0
 	github.com/fluxcd/pkg/untar v0.1.0
 	github.com/fluxcd/pkg/version v0.1.0
-	github.com/fluxcd/source-controller/api v0.25.6
+	github.com/fluxcd/source-controller/api v0.25.7
 	github.com/go-git/go-billy/v5 v5.3.1
 	github.com/go-git/go-git/v5 v5.4.2
 	github.com/go-logr/logr v1.2.3