diff --git a/UPSTREAM_PROJECTS.yaml b/UPSTREAM_PROJECTS.yaml
index de6efdfb96..bd46d4fb13 100644
--- a/UPSTREAM_PROJECTS.yaml
+++ b/UPSTREAM_PROJECTS.yaml
@@ -181,7 +181,7 @@ projects:
     repos:
       - name: cluster-api
         versions:
-          - tag: v1.6.4
+          - tag: v1.7.0
             go_version: "1.21"
       - name: cluster-api-provider-cloudstack
         versions:
diff --git a/projects/kubernetes-sigs/cluster-api/GIT_TAG b/projects/kubernetes-sigs/cluster-api/GIT_TAG
index 3717b2a503..a20e2d82d2 100644
--- a/projects/kubernetes-sigs/cluster-api/GIT_TAG
+++ b/projects/kubernetes-sigs/cluster-api/GIT_TAG
@@ -1 +1 @@
-v1.6.4
+v1.7.0
diff --git a/projects/kubernetes-sigs/cluster-api/README.md b/projects/kubernetes-sigs/cluster-api/README.md
index a6c8dadaa6..d5ba23e148 100644
--- a/projects/kubernetes-sigs/cluster-api/README.md
+++ b/projects/kubernetes-sigs/cluster-api/README.md
@@ -1,5 +1,5 @@
 ## **Cluster API**
-![Version](https://img.shields.io/badge/version-v1.6.4-blue)
+![Version](https://img.shields.io/badge/version-v1.7.0-blue)
 ![Build Status](https://codebuild.us-west-2.amazonaws.com/badges?uuid=eyJlbmNyeXB0ZWREYXRhIjoiQVZ3TDBZZVVXZUZiVmtqLzVoOVcrV2FaMmxRRzJXRmJCRlZtQkNodXdWZ0FrNm0zQ3l5UzNqTkdsQXgwdzc0bTBZc1RIcjBhMUVFbEhIK3d2VDVPek1rPSIsIml2UGFyYW1ldGVyU3BlYyI6IkVuOGJxNXBPZEtDek81Q3giLCJtYXRlcmlhbFNldFNlcmlhbCI6MX0%3D&branch=main)
 
 [Cluster API](https://github.com/kubernetes-sigs/cluster-api) is a Kubernetes sub-project focused on providing declarative APIs and tooling to simplify provisioning, upgrading, and operating multiple Kubernetes clusters. It uses Kubernetes-style APIs and patterns to automate cluster lifecycle management for platform operators. The supporting infrastructure, like virtual machines, networks, load balancers, and VPCs, as well as the Kubernetes cluster configuration are all defined in the same way that application developers operate deploying and managing their workloads. This enables consistent and repeatable cluster deployments across a wide variety of infrastructure environments. Cluster API can be extended to support any infrastructure provider (AWS, Azure, vSphere, etc.) or bootstrap provider (kubeadm is default) as required by the customer.