diff --git a/RELEASE.md b/RELEASE.md
new file mode 100644
index 0000000000..98cc1a7a01
--- /dev/null
+++ b/RELEASE.md
@@ -0,0 +1,9 @@
+## 0.40.0 - 2023-05-26
+
+### Breaking changes
+
+- Bump Z3 to v4.12.1, see #2565
+
+### Bug fixes
+
+- - fix pretty printing of `x \div y` and `x / y` (#2562)
diff --git a/VERSION b/VERSION
index 8d2456d9dc..9b0025a785 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-0.30.10-SNAPSHOT
+0.40.0