diff --git a/CHANGELOG.md b/CHANGELOG.md
index 91af2a6f..6a7f01b4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,13 @@
 
 All notable changes to this project are documented in this file.
 
+## 0.32.1
+
+**Release date:** 2022-11-18
+
+This prerelease rectifies the `v0.32.0` release by retracting the previous Go
+version, bumping the controller api version and the controller deployment.
+
 ## 0.32.0
 
 **Release date:** 2022-11-17
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 1e2bd03a..4c3acc46 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: v0.31.0
+  newTag: v0.32.1
diff --git a/go.mod b/go.mod
index 930ba80b..f22f5dbc 100644
--- a/go.mod
+++ b/go.mod
@@ -45,7 +45,7 @@ require (
 	github.com/fluxcd/pkg/testserver v0.4.0
 	github.com/fluxcd/pkg/untar v0.2.0
 	github.com/fluxcd/pkg/version v0.2.0
-	github.com/fluxcd/source-controller/api v0.31.0
+	github.com/fluxcd/source-controller/api v0.32.1
 	github.com/go-git/go-billy/v5 v5.3.1
 	github.com/go-logr/logr v1.2.3
 	github.com/google/go-containerregistry v0.12.1
@@ -404,3 +404,7 @@ require (
 	sigs.k8s.io/release-utils v0.7.3 // indirect
 	sigs.k8s.io/structured-merge-diff/v4 v4.2.3 // indirect
 )
+
+retract (
+	v0.32.0 // Refers to incorrect ./api version.
+)