diff --git a/.github/workflows/scripts/bump-versions.sh b/.github/workflows/scripts/bump-versions.sh
new file mode 100755
index 00000000..f622b1e4
--- /dev/null
+++ b/.github/workflows/scripts/bump-versions.sh
@@ -0,0 +1,210 @@
+#!/bin/bash
+
+# This script takes either current beta version, current stable version, or both,
+# and optionally next beta version and next stable version, and updates the version
+# in the specified files. If next version is not provided, it will infer the next 
+# semantic version (e.g. v0.110.0 -> v0.111.0 or v1.16.0 -> v1.17.0) based on the 
+# current version(s) passed.
+
+# Function to display usage
+usage() {
+  echo "Usage: $0 [--commit] [--pull-request] --current-beta-core <current-beta-core> [--current-beta-contrib <current-beta-contrib>] [--current-stable <current-stable>] [--next-beta-core <next-beta-core>] [--next-beta-contrib <next-beta-contrib>] [--next-stable <next-stable>]"
+  echo "  --current-beta-core: Current beta version of the core component (e.g., v0.110.0)"
+  echo "  --current-beta-contrib: Current beta version of the contrib component (e.g., v0.110.0)"
+  echo "  --current-stable: Current stable version of the core component (e.g., v1.16.0)"
+  echo "  at least one of the above three arguments is required, or there is no version to update."
+  echo
+  echo "  --next-beta-core: Next beta version of the core component (e.g., v0.111.0)"
+  echo "  --next-beta-contrib: Next beta version of the contrib component (e.g., v0.111.0)"
+  echo "  --next-stable: Next stable version of the core component (e.g., v1.17.0)"
+  echo
+  echo "  --commit: Commit the changes to a new branch"
+  echo "  --pull-request: Push the changes to the repo and create a draft PR (requires --commit)"
+  exit 1
+}
+
+# Function to validate semantic version and strip leading 'v'
+validate_and_strip_version() {
+  local var_name=$1
+  local version=${!var_name}
+  # Strip leading 'v' if present
+  version=${version#v}
+  if [[ ! $version =~ ^[0-9]+\.[0-9]+\.[0-9]+$ ]]; then
+    echo "Invalid version: $version. Must be a semantic version (e.g., 1.2.3)."
+    exit 1
+  fi
+  eval "$var_name='$version'"
+}
+commit_changes=false
+create_pr=false
+# Parse named arguments
+while [[ "$#" -gt 0 ]]; do
+  case $1 in
+    --current-beta-core) current_beta_core="$2"; shift ;;
+    --current-beta-contrib) current_beta_contrib="$2"; shift ;;
+    --current-stable) current_stable="$2"; shift ;;
+    --next-beta-core) next_beta_core="$2"; shift ;;
+    --next-beta-contrib) next_beta_contrib="$2"; shift ;;
+    --next-stable) next_stable="$2"; shift ;;
+    --commit) commit_changes=true ;;
+    --pull-request) create_pr=true ;;
+    *) echo "Unknown parameter passed: $1"; usage ;;
+  esac
+  shift
+done
+
+# Check if --pull-request is passed without --commit
+if [ "$create_pr" = true ] && [ "$commit_changes" = false ]; then
+  echo "--pull-request requires --commit"
+  usage
+fi
+
+# Check if at least one of the required arguments is provided
+if [ -z "$current_beta_core" ] && [ -z "$current_beta_contrib" ] && [ -z "$current_stable" ]; then
+  usage
+fi
+
+# Validate and strip versions
+if [ -n "$current_beta_core" ]; then
+  validate_and_strip_version current_beta_core
+fi
+if [ -n "$current_beta_contrib" ]; then
+  validate_and_strip_version current_beta_contrib
+fi
+if [ -n "$current_stable" ]; then
+  validate_and_strip_version current_stable
+fi
+if [ -n "$next_beta_core" ]; then
+  validate_and_strip_version next_beta_core
+fi
+if [ -n "$next_beta_contrib" ]; then
+  validate_and_strip_version next_beta_contrib
+fi
+if [ -n "$next_stable" ]; then
+  validate_and_strip_version next_stable
+fi
+
+# Function to bump the minor version and reset patch version to 0
+bump_version() {
+  local version=$1
+  local major
+  major=$(echo "$version" | cut -d. -f1)
+  local minor
+  minor=$(echo "$version" | cut -d. -f2)
+  local new_minor
+  new_minor=$((minor + 1))
+  echo "$major.$new_minor.0"
+}
+
+# Infer the next beta version if not supplied
+if  [ -n "$current_beta_core" ] && [ -z "$next_beta_core" ]; then
+  next_beta_core=$(bump_version "$current_beta_core")
+fi
+if  [ -n "$current_beta_contrib" ] && [ -z "$next_beta_contrib" ]; then
+  next_beta_contrib=$(bump_version "$current_beta_contrib")
+fi
+
+# Infer the next stable version if current_stable provided and next version not supplied
+if [ -n "$current_stable" ] && [ -z "$next_stable" ]; then
+  next_stable=$(bump_version "$current_stable")
+fi
+
+# List of files to update
+files=(
+  "distributions/otelcol-contrib/manifest.yaml"
+  "distributions/otelcol/manifest.yaml"
+  "distributions/otelcol-k8s/manifest.yaml"
+  "distributions/otelcol-otlp/manifest.yaml"
+  "Makefile"
+)
+
+# Update versions in each file
+for file in "${files[@]}"; do
+  if [ -f "$file" ]; then
+    temp_file=$(mktemp)
+    cp "$file" "$temp_file"
+    line_number=1
+    while IFS= read -r line; do
+      if [[ "$line" == *"github.com/open-telemetry/opentelemetry-collector-contrib"* ]]; then
+        if [ -n "$current_beta_contrib" ]; then
+          sed -i.bak "${line_number}s/$current_beta_contrib/$next_beta_contrib/" "$temp_file"
+        fi   
+      elif [[ "$line" == *"go.opentelemetry.io/collector"* ]]; then
+        if [ -n "$current_beta_core" ]; then
+          sed -i.bak "${line_number}s/$current_beta_core/$next_beta_core/" "$temp_file"
+        fi
+        if [ -n "$current_stable" ]; then
+          sed -i.bak "${line_number}s/$current_stable/$next_stable/" "$temp_file"
+        fi
+      fi
+      line_number=$((line_number + 1))
+    done < "$file"
+    mv "$temp_file" "$file"
+    rm "${temp_file}.bak"
+  else
+    echo "File $file does not exist"
+  fi
+done
+
+echo "Version update completed."
+
+# Commit changes and draft PR
+if [ "$commit_changes" = false ] && [ "$create_pr" = false ]; then
+  echo "Changes not committed and PR not created."
+  exit 0
+fi
+
+git config --global user.name "github-actions[bot]"
+git config --global user.email "github-actions[bot]@users.noreply.github.com"
+
+commit_changes() {
+  local current_version=$1
+  local next_version=$2
+  shift 2
+  local branch_name="update-version-${next_version}"
+
+  git checkout -b "$branch_name"
+  for file in "${files[@]}"; do
+    git add "$file"
+  done
+  git commit -m "Update version from $current_version to $next_version"
+  git push -u origin "$branch_name"
+}
+
+create_pr() {
+  local current_version=$1
+  local next_version=$2
+  shift 2
+  local branch_name="update-version-${next_version}"
+
+  gh pr create --title "[chore] Prepare release $next_version" \
+    --body "This PR updates the version from $current_version to $next_version" \
+    --base main --head "$branch_name" --draft  
+}
+
+# TODO: Once Collector 1.0 is released, we can consider removing the
+# beta version check for commit and PR creation
+if [ -n "$current_beta_core" ]; then
+  if [ "$commit_changes" = true ]; then
+    commit_changes "$current_beta_core" "$next_beta_core"
+  fi
+  if [ "$create_pr" = true ]; then
+    create_pr "$current_beta_core" "$next_beta_core"
+  fi
+elif [ -n "$current_beta_contrib" ]; then
+  if [ "$commit_changes" = true ]; then
+    commit_changes "$current_beta_contrib" "$next_beta_contrib"
+  fi
+  if [ "$create_pr" = true ]; then
+    create_pr "$current_beta_contrib" "$next_beta_contrib"
+  fi
+else
+  if [ "$commit_changes" = true ]; then
+    commit_changes "$current_stable" "$next_stable"
+  fi
+  if [ "$create_pr" = true ]; then
+    create_pr "$current_stable" "$next_stable"
+  fi
+fi
+
+echo "Changes committed and PR created."
\ No newline at end of file
diff --git a/.github/workflows/update-version.yaml b/.github/workflows/update-version.yaml
new file mode 100644
index 00000000..5bac5d2e
--- /dev/null
+++ b/.github/workflows/update-version.yaml
@@ -0,0 +1,65 @@
+name: Update Version in Distributions and Prepare PR
+on:
+  workflow_dispatch:
+    inputs:
+      current_beta_core:
+        description: 'Current collector core beta version, e.g. v0.111.0 or 0.111.0'
+        required: false
+        default: ''
+      current_beta_contrib:
+        description: 'Current collector contrib beta version, e.g. v0.111.0 or 0.111.0'
+        required: false
+        default: ''
+      current_stable:
+        description: 'Current stable version, e.g. v1.16.0 or 1.16.0'
+        required: false
+        default: ''
+      next_beta_core:
+        description: 'Next collector core beta version (optional)'
+        required: false
+        default: ''
+      next_beta_contrib:
+        description: 'Next collector contrib beta version (optional)'
+        required: false
+        default: ''
+      next_stable:
+        description: 'Next stable version (optional)'
+        required: false
+        default: ''
+      create_pr:
+        description: 'Create a draft pull request with the changes'
+        required: true
+        type: boolean
+        default: true
+
+jobs:
+  update-version:
+    runs-on: ubuntu-latest
+    env:
+      GH_TOKEN: ${{ secrets.GITHUB_TOKEN }}
+    steps:
+      - name: Validate inputs
+        run: |
+          if [ -z "${{ github.event.inputs.current_beta_core }}" ] && [ -z "${{ github.event.inputs.current_beta_contrib }}" ] && [ -z "${{ github.event.inputs.current_stable }}" ]; then
+            echo "Error: At least one of 'current_beta_core', 'current_beta_contrib', or 'current_stable' must be provided."
+            exit 1
+          fi
+
+      - name: Checkout repository
+        uses: actions/checkout@v2
+
+      - name: Run bump-versions.sh
+        run: |
+          chmod +x .github/workflows/scripts/bump-versions.sh && \
+          args=""
+          if [ "${{ github.event.inputs.create_pr }}" = "true" ]; then
+            args="--commit --pull-request"
+          fi
+          .github/workflows/scripts/bump-versions.sh $args
+        env:
+          current_beta_core: ${{ github.event.inputs.current_beta_core }}
+          current_beta_contrib: ${{ github.event.inputs.current_beta_contrib }}
+          current_stable: ${{ github.event.inputs.current_stable }}
+          next_beta_core: ${{ github.event.inputs.next_beta_core }}
+          next_beta_contrib: ${{ github.event.inputs.next_beta_contrib }}
+          next_stable: ${{ github.event.inputs.next_stable }}