diff --git a/VERSION b/VERSION
index 3f8d610e..94afd53e 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-0.16.9-rc2
+0.17.0-rc1
diff --git a/cmake/zephyr/Kconfig b/cmake/zephyr/Kconfig
index f7c9c33d..643f1084 100644
--- a/cmake/zephyr/Kconfig
+++ b/cmake/zephyr/Kconfig
@@ -1,6 +1,6 @@
 # SPDX-License-Identifier: Apache-2.0
 
-config TOOLCHAIN_ZEPHYR_0_16
+config TOOLCHAIN_ZEPHYR_0_17
 	def_bool y
 	# FIXME: Newlib-nano is disabled for Xtensa targets due to the memset
         #        bug causing crashes (see the GitHub issue #660).
diff --git a/release-notes.md b/release-notes.md
index 55c92158..ae85bae8 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 0.17.0-rc1
 
 - general: