diff --git a/diskimage-builder-1.24.0.tar.gz b/diskimage-builder-1.24.0.tar.gz
deleted file mode 100644
index 5ed045c..0000000
--- a/diskimage-builder-1.24.0.tar.gz
+++ /dev/null
@@ -1,3 +0,0 @@
-version https://git-lfs.github.com/spec/v1
-oid sha256:e5236e0be1d07e0111bceae344bfe6f9dd8b0ed9eba64240e218ecc70b9a7b03
-size 256522
diff --git a/diskimage-builder-1.26.1.tar.gz b/diskimage-builder-1.26.1.tar.gz
new file mode 100644
index 0000000..c7a2696
--- /dev/null
+++ b/diskimage-builder-1.26.1.tar.gz
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:dd842a364124a59aaa3751fe178f8799c39e29badbc69d1459d2ed35b9042660
+size 260140
diff --git a/diskimage-builder.changes b/diskimage-builder.changes
index 3f08c75..2369110 100644
--- a/diskimage-builder.changes
+++ b/diskimage-builder.changes
@@ -1,3 +1,37 @@
+-------------------------------------------------------------------
+Thu Dec 22 17:33:25 UTC 2016 - mchandras@suse.de
+
+- Update to version 1.26.1
+  * Generate ssh-hostkeys on boot for ironic agent
+  * add option to configure cloud-init to allow password authentication
+  * elements: Drop unneeded DIB_INIT_SYSTEM usage
+  * Replace six.iteritems() with .items()
+  * Catch errors in DIB_INIT_SYSTEM export
+  * DIB element to support cinder local attach/detach functionality
+  * elements: Drop executable bits from environment files
+  * Update sysctl-write-value to do conflict checking
+  * Put MKFS_OPTS after filesystem type
+  * Make dib-python use the default python for distro
+  * Don't set the executable bit on dhcp-interface@.service
+  * Move pip-and-virtualenv source install to 10-
+  * Add install-types as pip-and-virtualenv dep
+  * Allow package-installs to parse DIB_PYTHON_VERSION
+  * Fix pip-and-virtualenv to work with python3
+  * elements: dib-python: Add python2 as the default version for openSUSE
+  * Support sysv init system used by Debian Wheezy
+  * Pip install as 10- incompatible with 05-heat-cfntools
+  * Recreate initramfs within loopback image
+  * Fix bootloader element on ppc
+  * Add ubuntu-precise support to dib-python
+  * FIx the DIB_CLOUD_INIT_ALLOW_SSH_PWAUTH variable name in README file
+  * Switch to openSUSE Leap 42.2 release by default
+  * Install dracut-generic-config package
+  * Add output image format tgz support
+  * Add squashfs output image format
+  * set default DIB_PYTHON_VERSION=2 for rhel7
+  * Set grub timeout default
+  * Dont run with VIRTUAL_ENV set
+
 -------------------------------------------------------------------
 Mon Dec  5 15:24:49 UTC 2016 - mchandras@suse.de
 
diff --git a/diskimage-builder.spec b/diskimage-builder.spec
index 31ccee0..01337d8 100644
--- a/diskimage-builder.spec
+++ b/diskimage-builder.spec
@@ -20,7 +20,7 @@
 # are only ever run inside the disk image build chroot).
 %global         __requires_exclude_from ^%{_datadir}/%{name}/elements/.*$
 Name:           diskimage-builder
-Version:        1.24.0
+Version:        1.26.1
 Release:        0
 Summary:        Image Building Tools for OpenStack
 License:        Apache-2.0