diff --git a/.github/badges/version.svg b/.github/badges/version.svg
new file mode 100644
index 00000000..a1eaa7cd
--- /dev/null
+++ b/.github/badges/version.svg
@@ -0,0 +1 @@
+<svg xmlns="http://www.w3.org/2000/svg" width="103" height="20" role="img" aria-label="version: v2.1.0"><title>version: v2.1.0</title><g shape-rendering="crispEdges"><rect width="51" height="20" fill="#555"/><rect x="51" width="52" height="20" fill="#007ec6"/></g><g fill="#fff" text-anchor="middle" font-family="Verdana,Geneva,DejaVu Sans,sans-serif" font-size="11"><text x="25" y="14">version</text><text x="77" y="14">v2.1.0</text></g></svg>
diff --git a/.github/workflows/release.yml b/.github/workflows/release.yml
index 3296bf8b..26efbb7b 100644
--- a/.github/workflows/release.yml
+++ b/.github/workflows/release.yml
@@ -795,6 +795,29 @@ jobs:
           TAG="${RELEASE_TAG}"
           gh release edit "${TAG}" --repo "${GITHUB_REPOSITORY}" --draft=false --latest
 
+      - name: Update README version badge
+        if: ${{ inputs.publish_release }}
+        run: |
+          set -euo pipefail
+          BADGE_LABEL_WIDTH=51
+          BADGE_VALUE="${RELEASE_TAG}"
+          BADGE_VALUE_WIDTH=$(( ${#BADGE_VALUE} * 7 + 10 ))
+          BADGE_WIDTH=$(( BADGE_LABEL_WIDTH + BADGE_VALUE_WIDTH ))
+          BADGE_LABEL_X=$(( BADGE_LABEL_WIDTH / 2 ))
+          BADGE_VALUE_X=$(( BADGE_LABEL_WIDTH + BADGE_VALUE_WIDTH / 2 ))
+          mkdir -p .github/badges
+          cat > .github/badges/version.svg <<EOF
+          <svg xmlns="http://www.w3.org/2000/svg" width="${BADGE_WIDTH}" height="20" role="img" aria-label="version: ${BADGE_VALUE}"><title>version: ${BADGE_VALUE}</title><g shape-rendering="crispEdges"><rect width="${BADGE_LABEL_WIDTH}" height="20" fill="#555"/><rect x="${BADGE_LABEL_WIDTH}" width="${BADGE_VALUE_WIDTH}" height="20" fill="#007ec6"/></g><g fill="#fff" text-anchor="middle" font-family="Verdana,Geneva,DejaVu Sans,sans-serif" font-size="11"><text x="${BADGE_LABEL_X}" y="14">version</text><text x="${BADGE_VALUE_X}" y="14">${BADGE_VALUE}</text></g></svg>
+          EOF
+          if git diff --quiet -- .github/badges/version.svg; then
+            exit 0
+          fi
+          git config user.name "github-actions[bot]"
+          git config user.email "41898282+github-actions[bot]@users.noreply.github.com"
+          git add .github/badges/version.svg
+          git commit -m "docs(readme): update release badge to ${BADGE_VALUE}"
+          git push
+
       - name: Keep release as draft
         if: ${{ github.event_name == 'workflow_dispatch' && !inputs.publish_release }}
         run: echo "Draft release ${RELEASE_TAG} is ready. It was not published because publish_release=false."
diff --git a/README.md b/README.md
index 32774604..c1fc4558 100644
--- a/README.md
+++ b/README.md
@@ -17,7 +17,7 @@
 </p>
 
 <p align="center">
-  <a href="https://github.com/777genius/agent-teams-ai/releases/latest"><img src="https://img.shields.io/github/v/release/777genius/agent-teams-ai?style=flat-square&label=version&color=blue" alt="Latest Release" /></a>&nbsp;
+  <a href="https://github.com/777genius/agent-teams-ai/releases/latest"><img src=".github/badges/version.svg" alt="Latest Release" /></a>&nbsp;
   <a href="https://github.com/777genius/agent-teams-ai/actions/workflows/ci.yml"><img src="https://github.com/777genius/agent-teams-ai/actions/workflows/ci.yml/badge.svg" alt="CI Status" /></a>&nbsp;
   <a href="https://discord.gg/qtqSZSyuEc"><img src="https://img.shields.io/badge/Discord-Join%20us-5865F2?style=flat-square&logo=discord&logoColor=white" alt="Discord" /></a>
 </p>