diff --git a/images/capi/packer/azure/azure-config.json b/images/capi/packer/azure/azure-config.json
index 9949048dd9..27373f25bb 100644
--- a/images/capi/packer/azure/azure-config.json
+++ b/images/capi/packer/azure/azure-config.json
@@ -5,5 +5,5 @@
   "containerd_wasm_shims_runtimes": "lunatic,slight,spin,wws",
   "subscription_id": "{{env `AZURE_SUBSCRIPTION_ID`}}",
   "use_azure_cli_auth": "{{env `USE_AZURE_CLI_AUTH`}}",
-  "vm_size": "Standard_B2ms"
+  "vm_size": "{{ user `vm_size` }}"
 }
diff --git a/images/capi/packer/azure/config.pkr.hcl b/images/capi/packer/azure/config.pkr.hcl
index 4247e2c506..d5962a06bb 100644
--- a/images/capi/packer/azure/config.pkr.hcl
+++ b/images/capi/packer/azure/config.pkr.hcl
@@ -1,7 +1,7 @@
 packer {
   required_plugins {
     azure = {
-      version = ">= 2.1.8"
+      version = ">= 2.4.0"
       source  = "github.com/hashicorp/azure"
     }
   }
diff --git a/images/capi/packer/azure/packer.json b/images/capi/packer/azure/packer.json
index 6456d2bdf5..4cb4c51f79 100644
--- a/images/capi/packer/azure/packer.json
+++ b/images/capi/packer/azure/packer.json
@@ -56,17 +56,9 @@
       "image_sku": "{{user `image_sku`}}",
       "image_version": "{{user `image_version`}}",
       "location": "{{user `azure_location`}}",
-      "managed_image_name": "{{user `image_name`}}-{{user `build_timestamp`}}",
-      "managed_image_resource_group_name": "{{user `resource_group_name`}}",
-      "managed_image_storage_account_type": "{{user `managed_image_storage_account_type`}}",
       "name": "sig-{{user `build_name`}}",
       "os_disk_size_gb": "{{user `os_disk_size_gb`}}",
       "os_type": "Linux",
-      "plan_info": {
-        "plan_name": "{{user `plan_image_sku`}}",
-        "plan_product": "{{user `plan_image_offer`}}",
-        "plan_publisher": "{{user `plan_image_publisher`}}"
-      },
       "private_virtual_network_with_public_ip": "{{user `private_virtual_network_with_public_ip`}}",
       "public_ip_sku": "Standard",
       "shared_gallery_image_version_exclude_from_latest": "{{ user `exclude_from_latest` }}",
@@ -174,7 +166,7 @@
       "use_sudo": true,
       "vars_file": "{{user `goss_vars_file`}}",
       "vars_inline": {
-        "ARCH": "amd64",
+        "ARCH": "{{ user `arch` }}",
         "OS": "{{user `distribution` | lower}}",
         "OS_VERSION": "{{user `distribution_version` | lower}}",
         "PROVIDER": "azure",
@@ -211,6 +203,7 @@
     "ansible_extra_vars": "",
     "ansible_scp_extra_args": "",
     "ansible_user_vars": "",
+    "arch": "amd64",
     "azure_location": null,
     "build_name": null,
     "build_resource_group_name": "{{ env `BUILD_RESOURCE_GROUP_NAME` }}",
@@ -258,12 +251,8 @@
     "kubernetes_semver": null,
     "kubernetes_series": null,
     "kubernetes_source_type": null,
-    "managed_image_storage_account_type": "{{user `storage_account_type`}}",
     "manifest_output": "manifest.json",
     "os_disk_size_gb": "",
-    "plan_image_offer": "",
-    "plan_image_publisher": "",
-    "plan_image_sku": "",
     "private_virtual_network_with_public_ip": "",
     "provisioner_remote_folder": "/tmp",
     "source_sig_image_name": "",
@@ -276,6 +265,6 @@
     "virtual_network_name": "",
     "virtual_network_resource_group_name": "",
     "virtual_network_subnet_name": "",
-    "vm_size": ""
+    "vm_size": "Standard_B2ms"
   }
 }
diff --git a/images/capi/packer/azure/scripts/init-sig.sh b/images/capi/packer/azure/scripts/init-sig.sh
index 730c55b943..b50e1f16f8 100755
--- a/images/capi/packer/azure/scripts/init-sig.sh
+++ b/images/capi/packer/azure/scripts/init-sig.sh
@@ -134,6 +134,7 @@ create_image_definition() {
       --offer ${SIG_OFFER:-capz-demo} \
       --sku ${SIG_SKU:-$2} \
       --hyper-v-generation ${3} \
+      --architecture ${SIG_ARCHITECTURE:-x64} \
       --os-type ${4} \
       --features ${5:-''} \
       "${plan_args[@]}" # TODO: Delete this line after the image is GA