diff --git a/UPSTREAM_PROJECTS.yaml b/UPSTREAM_PROJECTS.yaml
index 800ce1ab03..514a80ae09 100644
--- a/UPSTREAM_PROJECTS.yaml
+++ b/UPSTREAM_PROJECTS.yaml
@@ -189,8 +189,8 @@ projects:
             go_version: "1.19"
       - name: cluster-api-provider-vsphere
         versions:
-          - tag: v1.8.5
-            go_version: "1.20"
+          - tag: v1.10.0-rc.1
+            go_version: "1.21"
       - name: cri-tools
         versions:
           - tag: v1.29.0
diff --git a/projects/kubernetes-sigs/cluster-api-provider-vsphere/GIT_TAG b/projects/kubernetes-sigs/cluster-api-provider-vsphere/GIT_TAG
index bb667f9c3e..f226dc94ec 100644
--- a/projects/kubernetes-sigs/cluster-api-provider-vsphere/GIT_TAG
+++ b/projects/kubernetes-sigs/cluster-api-provider-vsphere/GIT_TAG
@@ -1 +1 @@
-v1.8.5
+v1.10.0-rc.1
diff --git a/projects/kubernetes-sigs/cluster-api-provider-vsphere/GOLANG_VERSION b/projects/kubernetes-sigs/cluster-api-provider-vsphere/GOLANG_VERSION
index 5fb5a6b4f5..d2ab029d32 100644
--- a/projects/kubernetes-sigs/cluster-api-provider-vsphere/GOLANG_VERSION
+++ b/projects/kubernetes-sigs/cluster-api-provider-vsphere/GOLANG_VERSION
@@ -1 +1 @@
-1.20
+1.21
diff --git a/projects/kubernetes-sigs/cluster-api-provider-vsphere/README.md b/projects/kubernetes-sigs/cluster-api-provider-vsphere/README.md
index 00ddc0669b..62c5b83bfa 100644
--- a/projects/kubernetes-sigs/cluster-api-provider-vsphere/README.md
+++ b/projects/kubernetes-sigs/cluster-api-provider-vsphere/README.md
@@ -1,5 +1,5 @@
 ## **Cluster API Provider for vSphere**
-![Version](https://img.shields.io/badge/version-v1.8.5-blue)
+![Version](https://img.shields.io/badge/version-v1.10.0--rc.1-blue)
 ![Build Status](https://codebuild.us-west-2.amazonaws.com/badges?uuid=eyJlbmNyeXB0ZWREYXRhIjoiYm85WnJ4aDc2ZXhhVUxOWHJuUFJwN3FlQmE2L1Q4b2ZzNG91OVpjNVNGM1ZvbVBEUUM2bkdER3N5eVNrWTBKS2VSSW9Oa051aFVWS1dzVVlTOHBBZ0NRPSIsIml2UGFyYW1ldGVyU3BlYyI6IlEwOWNtd0llNXdjUGRvQWkiLCJtYXRlcmlhbFNldFNlcmlhbCI6MX0%3D&branch=main)
 
 The [Cluster API Provider for vSphere (CAPV)](https://github.com/kubernetes-sigs/cluster-api-provider-vsphere) is a a concrete implementation of Cluster API for vSphere, which paves the way for true vSphere hybrid deployments of Kubernetes. CAPV is designed to allow customers to use their existing vSphere infrastructure, including vCenter credentials, VMs, templates, etc. for bootstrapping and creating workload clusters.
@@ -32,7 +32,7 @@ You can find the latest version of this image [on ECR Public Gallery](https://ga
    1. Run `git format-patch <commit>`, where `<commit>` is the last upstream commit on that tag. Move the generated patches under the patches/ folder in this repo.
 1. Update the `GIT_TAG` file to have the new desired version based on the upstream release tags.
 1. Compare the old tag to the new, looking specifically for Makefile changes.
-   ex: [1.7.0 compared to 1.7.4](https://github.com/kubernetes-sigs/cluster-api-provider-vsphere/compare/v1.7.0...v1.8.5). Check if the [manifest-modification](https://github.com/kubernetes-sigs/cluster-api-provider-vsphere/blob/27368586949f746c6830a47dc2439cd5ebe57dd2/Makefile#L568) or [release-manifests](https://github.com/kubernetes-sigs/cluster-api-provider-vsphere/blob/27368586949f746c6830a47dc2439cd5ebe57dd2/Makefile#L577C9-L577C26)
+   ex: [1.7.0 compared to 1.7.4](https://github.com/kubernetes-sigs/cluster-api-provider-vsphere/compare/v1.7.0...v1.10.0--rc.1). Check if the [manifest-modification](https://github.com/kubernetes-sigs/cluster-api-provider-vsphere/blob/27368586949f746c6830a47dc2439cd5ebe57dd2/Makefile#L568) or [release-manifests](https://github.com/kubernetes-sigs/cluster-api-provider-vsphere/blob/27368586949f746c6830a47dc2439cd5ebe57dd2/Makefile#L577C9-L577C26)
    targets have changed in the Makefile, and make the required changes in create_manifests.sh
 1. Check the go.mod file to see if the golang version has changed when updating a version. Update the field `GOLANG_VERSION` in
    Makefile to match the version upstream.