diff --git a/.github/renovate.json b/.github/renovate.json
index b1556271..f7b20801 100644
--- a/.github/renovate.json
+++ b/.github/renovate.json
@@ -4,7 +4,22 @@
     "config:recommended"
   ],
   "enabledManagers": [
-    "github-actions"
+    "github-actions",
+    "regex"
+  ],
+  "regexManagers": [
+    {
+      "fileMatch": [
+        "^docker-compose\\.yml$",
+        "^relay/docker-compose\\.yml$"
+      ],
+      "matchStrings": [
+        "image:\\s*obolnetwork/charon:\\$\\{CHARON_VERSION:-v?(?<currentValue>[\\w.-]+)}"
+      ],
+      "datasourceTemplate": "github-releases",
+      "depNameTemplate": "ObolNetwork/charon",
+      "versioningTemplate": "semver"
+    }
   ],
   "packageRules": [
     {
@@ -24,6 +39,18 @@
         "renovate/github-actions"
       ],
       "groupName": "GitHub Actions updates"
+    },
+    {
+      "matchManagers": [
+        "regex"
+      ],
+      "matchDepNames": [
+        "ObolNetwork/charon"
+      ],
+      "labels": [
+        "renovate/charon"
+      ],
+      "groupName": "Charon image updates"
     }
   ]
 }
diff --git a/.github/workflows/dispath-update.yml b/.github/workflows/dispath-update.yml
deleted file mode 100644
index d8f00808..00000000
--- a/.github/workflows/dispath-update.yml
+++ /dev/null
@@ -1,34 +0,0 @@
-name: Dispatch Update Version
-
-on:
-  repository_dispatch:
-    types: [update-version]
-
-jobs:
-  update-version:
-    runs-on: ubuntu-latest
-    steps:
-      - name: Checkout this repository
-        uses: actions/checkout@v6
-
-      - name: Extract tag name
-        run: echo "TAG_NAME=${{ github.event.client_payload.tag }}" >> $GITHUB_ENV
-
-      - name: Update version in Ansible configuration
-        run: |
-          TAG_NAME="$(echo "${TAG_NAME}" | sed 's/^v//')"
-          
-          sed -i -E 's|(image: obolnetwork/charon:\$\{CHARON_VERSION:-)v\.?[0-9]+\.[0-9]+\.[0-9]+[a-zA-Z0-9\-]*}|\1v'"${TAG_NAME}"'}|' docker-compose.yml
-          sed -i -E 's|(image: obolnetwork/charon:\$\{CHARON_VERSION:-)v\.?[0-9]+\.[0-9]+\.[0-9]+[a-zA-Z0-9\-]*}|\1v'"${TAG_NAME}"'}|' relay/docker-compose.yml
-
-      - name: Create Pull Request
-        uses: peter-evans/create-pull-request@v8
-        with:
-          token: ${{ secrets.GITHUB_TOKEN }}
-          base: main
-          branch: update-version-${{ env.TAG_NAME }}
-          title: "Update version to ${{ env.TAG_NAME }}"
-          body: "Automatically generated PR to update version to ${{ env.TAG_NAME }}"
-          commit-message: "Update version to ${{ env.TAG_NAME }}"
-          author-name: "obol-platform"
-          author-email: "platform@obol.tech"