diff --git a/.github/workflows/scripts/bump-versions.sh b/.github/workflows/scripts/bump-versions.sh
new file mode 100755
index 00000000..456820d1
--- /dev/null
+++ b/.github/workflows/scripts/bump-versions.sh
@@ -0,0 +1,237 @@
+#!/bin/bash
+set -e
+# This script reads current versions and takes optional next versions, 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) read in.
+
+# List of files to update
+manifest_files=(
+  "distributions/otelcol-contrib/manifest.yaml"
+  "distributions/otelcol/manifest.yaml"
+  "distributions/otelcol-k8s/manifest.yaml"
+  "distributions/otelcol-otlp/manifest.yaml"
+)
+
+# Function to display usage
+usage() {
+  echo "Usage: $0 [--commit] [--pull-request] [--next-beta-core <next-beta-core>] [--next-beta-contrib <next-beta-contrib>] [--next-stable <next-stable>]"
+  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='$version'"
+}
+commit_changes=false
+create_pr=false
+# Parse named arguments
+current_beta_core=$(awk '/^.*go\.opentelemetry\.io\/collector\/.* v0/ {print $4; exit}' distributions/otelcol/manifest.yaml)
+current_beta_contrib=$(awk '/^.*github\.com\/open-telemetry\/opentelemetry-collector-contrib\/.* v0/ {print $4; exit}' distributions/otelcol-contrib/manifest.yaml)
+current_stable=$(awk '/^.*go\.opentelemetry\.io\/collector\/.* v1/ {print $4; exit}' distributions/otelcol/manifest.yaml)
+while [[ "$#" -gt 0 ]]; do
+  case $1 in
+    --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 ] && [ "$commit_changes" = false ]; then
+  echo "--pull-request requires --commit"
+  usage
+fi
+
+# Validate and strip versions
+if [ -n "$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 compare two semantic versions and return the maximum
+max_version() {
+  local version1=$1
+  local version2=$2
+
+  # Strip leading 'v' if present
+  version1=${version1#v}
+  version2=${version2#v}
+
+  # Split versions into components
+  IFS='.' read -r -a ver1 <<< "$version1"
+  IFS='.' read -r -a ver2 <<< "$version2"
+
+  # Compare major, minor, and patch versions
+  for i in {0..2}; do
+    if [[ ${ver1[i]} -gt ${ver2[i]} ]]; then
+      echo "$version1"
+      return
+    elif [[ ${ver1[i]} -lt ${ver2[i]} ]]; then
+      echo "$version2"
+      return
+    fi
+  done
+
+  # If versions are equal, return either
+  echo "$version1"
+}
+
+# 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
+
+# Determine the maximum of next_beta_core and next_beta_contrib
+next_distribution_version=$(max_version "$next_beta_core" "$next_beta_contrib")
+validate_and_strip_version next_distribution_version
+
+# Infer the next stable version if current_stable provided and next version not supplied
+if [ -n "$current_stable" ] && [ -z "$next_stable" ]; then
+  next_stable=$(bump_version "$current_stable")
+fi
+
+# add escape characters to the current versions to work with sed
+escaped_current_beta_core=${current_beta_core//./\\.}
+escaped_current_beta_contrib=${current_beta_contrib//./\\.}
+escaped_current_stable=${current_stable//./\\.}
+
+# Determine the OS and set the sed command accordingly
+if [[ "$OSTYPE" == "darwin"* ]]; then
+  # macOS
+  sed_command="sed -i ''"
+else
+  # Linux
+  sed_command="sed -i"
+fi
+
+# Update versions in each manifest file
+echo "Updating core beta version from $current_beta_core to $next_beta_core,"
+echo "core stable version from $current_stable to $next_stable,"
+echo "contrib beta version from $current_beta_contrib to $next_beta_contrib,"
+echo "and distribution version to $next_distribution_version"
+for file in "${manifest_files[@]}"; do
+  if [ -f "$file" ]; then
+    $sed_command "s/\(^.*go\.opentelemetry\.io\/collector\/.*\) v$escaped_current_beta_core/\1 v$next_beta_core/" "$file"
+    $sed_command "s/\(^.*github\.com\/open-telemetry\/opentelemetry-collector-contrib\/.*\) v$escaped_current_beta_contrib/\1 v$next_beta_contrib/" "$file"
+    $sed_command "s/\(^.*go\.opentelemetry\.io\/collector\/.*\) v$escaped_current_stable/\1 v$next_stable/" "$file"
+    $sed_command "s/version: .*/version: $next_distribution_version/" "$file"
+  else
+    echo "File $file does not exist"
+  fi
+done
+
+# Update Makefile OCB version
+$sed_command "s/OTELCOL_BUILDER_VERSION ?= $escaped_current_beta_core/OTELCOL_BUILDER_VERSION ?= $next_beta_core/" Makefile
+
+echo "Version update completed."
+
+# Make a new changelog update
+make chlog-update VERSION="v$next_distribution_version"
+
+# Commit changes and draft PR
+if [ "$commit_changes" = 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"
+  git add .
+  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:"
+gh pr view
diff --git a/.github/workflows/update-version.yaml b/.github/workflows/update-version.yaml
new file mode 100644
index 00000000..cdb47db4
--- /dev/null
+++ b/.github/workflows/update-version.yaml
@@ -0,0 +1,42 @@
+name: Update Version in Distributions and Prepare PR
+on:
+  workflow_dispatch:
+    inputs:
+      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-24.04
+    env:
+      GH_TOKEN: ${{ secrets.GITHUB_TOKEN }}
+    steps:
+      - name: Checkout repository
+        uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4.2.2
+
+      - name: Run bump-versions.sh
+        run: |
+          args=""
+          if [ "${{ github.event.inputs.create_pr }}" = "true" ]; then
+            args="--commit --pull-request"
+          fi
+          .github/workflows/scripts/bump-versions.sh $args
+        env:
+          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 }}