diff --git a/src/integration/groovy/pl/allegro/tech/build/axion/release/SimpleIntegrationTest.groovy b/src/integration/groovy/pl/allegro/tech/build/axion/release/SimpleIntegrationTest.groovy
index 24ce14aa..79336f2b 100644
--- a/src/integration/groovy/pl/allegro/tech/build/axion/release/SimpleIntegrationTest.groovy
+++ b/src/integration/groovy/pl/allegro/tech/build/axion/release/SimpleIntegrationTest.groovy
@@ -203,4 +203,53 @@ class SimpleIntegrationTest extends BaseIntegrationTest {
         cleanup:
         environmentVariablesRule.clear("GITHUB_ACTIONS", "GITHUB_OUTPUT")
     }
+
+    def "should not update project.version after release when updateProjectVersionAfterRelease option is not set"() {
+        given:
+        buildFile("""
+            task assemble {
+              inputs.property("version", project.version)
+              doLast {
+                println("Assembling project: " + version)
+              }
+            }
+        """)
+
+        def result = runGradle('currentVersion', 'release', 'assemble', '-Prelease.localOnly', '-Prelease.disableChecks')
+
+        expect:
+        result.output.contains('Project version: 0.1.0-SNAPSHOT')
+        result.output.contains('Creating tag: v0.1.0')
+        result.output.contains('Assembling project: 0.1.0-SNAPSHOT')
+        result.task(":currentVersion").outcome == TaskOutcome.SUCCESS
+        result.task(":release").outcome == TaskOutcome.SUCCESS
+        result.task(":assemble").outcome == TaskOutcome.SUCCESS
+    }
+
+    def "should update project.version after release when updateProjectVersionAfterRelease option is set"() {
+        given:
+        buildFile("""
+            scmVersion {
+                updateProjectVersionAfterRelease = true
+            }
+
+            task assemble {
+              inputs.property("version", project.version)
+              doLast {
+                println("Assembling project: " + version)
+              }
+            }
+        """)
+
+        def result = runGradle('currentVersion', 'release', 'assemble', '-Prelease.localOnly', '-Prelease.disableChecks')
+
+        expect:
+        result.output.contains('Project version: 0.1.0-SNAPSHOT')
+        result.output.contains('Creating tag: v0.1.0')
+        result.output.contains('Project version will be updated after release.')
+        result.output.contains('Assembling project: 0.1.0')
+        result.task(":currentVersion").outcome == TaskOutcome.SUCCESS
+        result.task(":release").outcome == TaskOutcome.SUCCESS
+        result.task(":assemble").outcome == TaskOutcome.SUCCESS
+    }
 }
diff --git a/src/main/groovy/pl/allegro/tech/build/axion/release/ReleasePlugin.groovy b/src/main/groovy/pl/allegro/tech/build/axion/release/ReleasePlugin.groovy
index 91f28c1d..93a48690 100644
--- a/src/main/groovy/pl/allegro/tech/build/axion/release/ReleasePlugin.groovy
+++ b/src/main/groovy/pl/allegro/tech/build/axion/release/ReleasePlugin.groovy
@@ -41,12 +41,20 @@ abstract class ReleasePlugin implements Plugin<Project> {
             group = 'Release'
             description = 'Performs release - creates tag and pushes it to remote.'
             dependsOn(VERIFY_RELEASE_TASK)
+            if (versionConfig.updateProjectVersionAfterRelease.get() && project.tasks.matching { it.name == "assemble" }.size() > 0) {
+                project.logger.quiet("Project version will be updated after release.")
+                finalizedBy(project.tasks.named("assemble"))
+            }
         }
 
         project.tasks.register(CREATE_RELEASE_TASK, CreateReleaseTask) {
             group = 'Release'
             description = 'Performs first stage of release - creates tag.'
             dependsOn(VERIFY_RELEASE_TASK)
+            if (versionConfig.updateProjectVersionAfterRelease.get() && project.tasks.matching { it.name == "assemble" }.size() > 0) {
+                project.logger.quiet("Project version will be updated after release.")
+                finalizedBy(project.tasks.named("assemble"))
+            }
         }
 
         project.tasks.register(PUSH_RELEASE_TASK, PushReleaseTask) {
diff --git a/src/main/groovy/pl/allegro/tech/build/axion/release/ReleaseTask.groovy b/src/main/groovy/pl/allegro/tech/build/axion/release/ReleaseTask.groovy
index 702e27fc..2cca922e 100644
--- a/src/main/groovy/pl/allegro/tech/build/axion/release/ReleaseTask.groovy
+++ b/src/main/groovy/pl/allegro/tech/build/axion/release/ReleaseTask.groovy
@@ -1,5 +1,7 @@
 package pl.allegro.tech.build.axion.release
 
+
+import org.gradle.api.tasks.Input
 import org.gradle.api.tasks.TaskAction
 import pl.allegro.tech.build.axion.release.domain.Releaser
 import pl.allegro.tech.build.axion.release.domain.scm.ScmPushResult
@@ -12,6 +14,9 @@ import java.nio.file.StandardOpenOption
 
 abstract class ReleaseTask extends BaseAxionTask {
 
+    @Input
+    String projectVersion = project.version
+
     @TaskAction
     void release() {
         VersionResolutionContext context = resolutionContext()
@@ -32,6 +37,10 @@ abstract class ReleaseTask extends BaseAxionTask {
             throw new ReleaseFailedException("Status: ${status}\nMessage: ${message}")
         }
 
+        if (versionConfig.updateProjectVersionAfterRelease().get()) {
+            projectVersion = versionConfig.uncached.decoratedVersion
+        }
+
         if (result.outcome === ScmPushResultOutcome.SUCCESS) {
             if (System.getenv().containsKey('GITHUB_ACTIONS')) {
                 Files.write(
diff --git a/src/main/groovy/pl/allegro/tech/build/axion/release/domain/VersionConfig.groovy b/src/main/groovy/pl/allegro/tech/build/axion/release/domain/VersionConfig.groovy
index cf1d1282..8a215201 100644
--- a/src/main/groovy/pl/allegro/tech/build/axion/release/domain/VersionConfig.groovy
+++ b/src/main/groovy/pl/allegro/tech/build/axion/release/domain/VersionConfig.groovy
@@ -29,6 +29,7 @@ abstract class VersionConfig extends BaseExtension {
     private static final String IGNORE_UNCOMMITTED_CHANGES_PROPERTY = 'release.ignoreUncommittedChanges'
     private static final String FORCE_SNAPSHOT_PROPERTY = 'release.forceSnapshot'
     private static final String USE_HIGHEST_VERSION_PROPERTY = 'release.useHighestVersion'
+    private static final String UPDATE_PROJECT_VERSION_AFTER_RELEASE_PROPERTY = 'release.updateProjectVersionAfterRelease'
     private static final String LOCAL_ONLY = "release.localOnly"
     private static final String FORCE_VERSION_PROPERTY = 'release.version'
     private static final String DEPRECATED_FORCE_VERSION_PROPERTY = 'release.forceVersion'
@@ -43,6 +44,7 @@ abstract class VersionConfig extends BaseExtension {
         getLocalOnly().convention(false)
         getIgnoreUncommittedChanges().convention(true)
         getUseHighestVersion().convention(false)
+        getUpdateProjectVersionAfterRelease().convention(false)
         getUnshallowRepoOnCI().convention(false)
         getIgnoreGlobalGitConfig().convention(false)
         getReleaseBranchNames().convention(gradlePropertyAsSet(RELEASE_BRANCH_NAMES_PROPERTY).orElse(['master', 'main'] as Set))
@@ -127,6 +129,9 @@ abstract class VersionConfig extends BaseExtension {
     @Internal
     abstract Property<Boolean> getUseHighestVersion();
 
+    @Internal
+    abstract Property<Boolean> getUpdateProjectVersionAfterRelease();
+
     Provider<Boolean> ignoreUncommittedChanges() {
         gradlePropertyPresent(IGNORE_UNCOMMITTED_CHANGES_PROPERTY)
             .orElse(ignoreUncommittedChanges)
@@ -140,6 +145,10 @@ abstract class VersionConfig extends BaseExtension {
         gradlePropertyPresent(USE_HIGHEST_VERSION_PROPERTY).orElse(useHighestVersion)
     }
 
+    Provider<Boolean> updateProjectVersionAfterRelease() {
+        gradlePropertyPresent(UPDATE_PROJECT_VERSION_AFTER_RELEASE_PROPERTY).orElse(updateProjectVersionAfterRelease)
+    }
+
     Provider<Boolean> localOnly() {
         gradlePropertyPresent(LOCAL_ONLY).orElse(localOnly)
     }