diff --git a/VERSION b/VERSION
index 3f8d610e..0e035b99 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-0.16.9-rc2
+0.16.9-rc3
diff --git a/release-notes.md b/release-notes.md
index 55c92158..30908546 100644
--- a/release-notes.md
+++ b/release-notes.md
@@ -1,6 +1,6 @@
 # Notes / Changes in various releases
 
-## Zephyr SDK 0.16.9-rc2
+## Zephyr SDK 0.16.9-rc3
 
 - general:
 
@@ -34,10 +34,6 @@
     software using Cortex-M Security Extensions (CMSE). For more details, refer
     to the CVE-2024-0151.
 
-- picolibc:
-
-  * Updated to Picolibc 1.8.8 release.
-
 ## Zephyr SDK 0.16.7/0.16.8
 
 - gcc: