diff --git a/VERSION b/VERSION
index f0c65c72..9a4990ad 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-7.85.0-next
+7.86.0-next
diff --git a/tools/devworkspace-generator/package.json b/tools/devworkspace-generator/package.json
index d6907fd3..b666dda3 100644
--- a/tools/devworkspace-generator/package.json
+++ b/tools/devworkspace-generator/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@eclipse-che/che-devworkspace-generator",
-  "version": "7.85.0-next",
+  "version": "7.86.0-next",
   "private": false,
   "description": "Generates DevWorkspaces by transforming existing devfiles",
   "main": "lib/entrypoint.js",