diff --git a/.github/workflows/pr-checks.yml b/.github/workflows/pr-checks.yml
index 54b63a683..1176399ca 100644
--- a/.github/workflows/pr-checks.yml
+++ b/.github/workflows/pr-checks.yml
@@ -39,13 +39,6 @@ jobs:
           key: ${{ runner.os }}-${{ env.cache-name }}-${{ hashFiles('**/go.sum') }}
       - name: Run linter
         run: make lint
-      # # Ensure there is no diff when make update-flagd is run 
-      - run: make update-flagd
-      - name: Check version diff 
-        run: |
-          if [ ! -z "$(git status --porcelain)" ]; then exit 0; fi
-          echo "flagd version replace did not produce diff. Please revert this change in apis/core/v1alpha1/flagsourceconfiguration_types.go"
-          exit 1
 
   test:
     name: Component Tests
@@ -120,8 +113,6 @@ jobs:
     steps:
       - name: Checkout
         uses: actions/checkout@v3
-      - name: Update flagd tag
-        run: make update-flagd
       - name: Set up QEMU
         uses: docker/setup-qemu-action@master
         with:
diff --git a/.github/workflows/release-please.yml b/.github/workflows/release-please.yml
index 3b3ebd995..6e9f84122 100644
--- a/.github/workflows/release-please.yml
+++ b/.github/workflows/release-please.yml
@@ -115,7 +115,6 @@ jobs:
           with:
             go-version: ${{ env.DEFAULT_GO_VERSION }}
         - run: |
-            make update-flagd
             go mod tidy
             make controller-gen
             IMG=ghcr.io/open-feature/open-feature-operator:${{ needs.release-please.outputs.release_tag_name }} make helm-package
diff --git a/Makefile b/Makefile
index 2795dc8a9..fe7dd92a5 100644
--- a/Makefile
+++ b/Makefile
@@ -6,9 +6,8 @@ ARCH?=amd64
 IMG?=$(RELEASE_REGISTRY)/$(RELEASE_IMAGE)
 # customize overlay to be used in the build, DEFAULT or HELM
 KUSTOMIZE_OVERLAY ?= DEFAULT
-# ENVTEST_K8S_VERSION refers to the version of kubebuilder assets to be downloaded by envtest binary.
-FLAGD_VERSION=v0.4.1
 CHART_VERSION=v0.2.29# x-release-please-version
+# ENVTEST_K8S_VERSION refers to the version of kubebuilder assets to be downloaded by envtest binary.
 ENVTEST_K8S_VERSION = 1.26.1
 
 # Get the currently used golang install path (in GOPATH/bin, unless GOBIN is set)
@@ -50,11 +49,8 @@ help: ## Display this help.
 manifests: controller-gen ## Generate WebhookConfiguration, ClusterRole and CustomResourceDefinition objects.
 	$(CONTROLLER_GEN) rbac:roleName=manager-role crd webhook paths="./..." output:crd:artifacts:config=config/crd/bases
 
-.PHONY: update-flagd
-update-flagd:
-	./hack/update-flagd.sh ${FLAGD_VERSION}
 .PHONY: generate
-generate: update-flagd controller-gen ## Generate code containing DeepCopy, DeepCopyInto, and DeepCopyObject method implementations.
+generate: controller-gen ## Generate code containing DeepCopy, DeepCopyInto, and DeepCopyObject method implementations.
 	$(CONTROLLER_GEN) object:headerFile="hack/boilerplate.go.txt" paths="./..."
 
 .PHONY: fmt
@@ -102,7 +98,7 @@ run: manifests generate fmt vet ## Run a controller from your host.
 	go run ./main.go
 
 .PHONY: docker-build
-docker-build: update-flagd clean  ## Build docker image with the manager.
+docker-build: clean  ## Build docker image with the manager.
 	DOCKER_BUILDKIT=1 docker build \
 		-t $(IMG)-$(ARCH)  \
 		--platform linux/$(ARCH) \
diff --git a/apis/core/v1alpha1/flagsourceconfiguration_types.go b/apis/core/v1alpha1/flagsourceconfiguration_types.go
index 3aad44752..967bf0d22 100644
--- a/apis/core/v1alpha1/flagsourceconfiguration_types.go
+++ b/apis/core/v1alpha1/flagsourceconfiguration_types.go
@@ -29,30 +29,29 @@ import (
 type SyncProviderType string
 
 const (
-	SidecarEnvVarPrefix              string = "SIDECAR_ENV_VAR_PREFIX"
-	InputConfigurationEnvVarPrefix   string = "SIDECAR"
-	SidecarMetricPortEnvVar          string = "METRICS_PORT"
-	SidecarPortEnvVar                string = "PORT"
-	SidecarSocketPathEnvVar          string = "SOCKET_PATH"
-	SidecarEvaluatorEnvVar           string = "EVALUATOR"
-	SidecarImageEnvVar               string = "IMAGE"
-	SidecarVersionEnvVar             string = "TAG"
-	SidecarProviderArgsEnvVar        string = "PROVIDER_ARGS"
-	SidecarDefaultSyncProviderEnvVar string = "SYNC_PROVIDER"
-	SidecarLogFormatEnvVar           string = "LOG_FORMAT"
-	defaultSidecarEnvVarPrefix       string = "FLAGD"
-	DefaultMetricPort                int32  = 8014
-	defaultPort                      int32  = 8013
-	defaultSocketPath                string = ""
-	defaultEvaluator                 string = "json"
-	defaultImage                     string = "ghcr.io/open-feature/flagd"
-	// INPUT_FLAGD_VERSION` is replaced in the `update-flagd` Makefile target
-	defaultTag             string           = "INPUT_FLAGD_VERSION"
-	defaultLogFormat       string           = "json"
-	SyncProviderKubernetes SyncProviderType = "kubernetes"
-	SyncProviderFilepath   SyncProviderType = "filepath"
-	SyncProviderHttp       SyncProviderType = "http"
-	defaultSyncProvider                     = SyncProviderKubernetes
+	SidecarEnvVarPrefix              string           = "SIDECAR_ENV_VAR_PREFIX"
+	InputConfigurationEnvVarPrefix   string           = "SIDECAR"
+	SidecarMetricPortEnvVar          string           = "METRICS_PORT"
+	SidecarPortEnvVar                string           = "PORT"
+	SidecarSocketPathEnvVar          string           = "SOCKET_PATH"
+	SidecarEvaluatorEnvVar           string           = "EVALUATOR"
+	SidecarImageEnvVar               string           = "IMAGE"
+	SidecarVersionEnvVar             string           = "TAG"
+	SidecarProviderArgsEnvVar        string           = "PROVIDER_ARGS"
+	SidecarDefaultSyncProviderEnvVar string           = "SYNC_PROVIDER"
+	SidecarLogFormatEnvVar           string           = "LOG_FORMAT"
+	defaultSidecarEnvVarPrefix       string           = "FLAGD"
+	DefaultMetricPort                int32            = 8014
+	defaultPort                      int32            = 8013
+	defaultSocketPath                string           = ""
+	defaultEvaluator                 string           = "json"
+	defaultImage                     string           = "ghcr.io/open-feature/flagd"
+	defaultTag                       string           = "v0.4.1"
+	defaultLogFormat                 string           = "json"
+	SyncProviderKubernetes           SyncProviderType = "kubernetes"
+	SyncProviderFilepath             SyncProviderType = "filepath"
+	SyncProviderHttp                 SyncProviderType = "http"
+	defaultSyncProvider                               = SyncProviderKubernetes
 )
 
 // EDIT THIS FILE!  THIS IS SCAFFOLDING FOR YOU TO OWN!
diff --git a/hack/update-flagd.sh b/hack/update-flagd.sh
deleted file mode 100755
index 5be5c60a5..000000000
--- a/hack/update-flagd.sh
+++ /dev/null
@@ -1,7 +0,0 @@
-#!/bin/bash
-FLAGD_VERSION=$1
-if [[ "$OSTYPE" == "linux-gnu"* ]]; then
-    sed -i "s/INPUT_FLAGD_VERSION/${FLAGD_VERSION}/g" apis/core/v1alpha1/flagsourceconfiguration_types.go
-elif [[ "$OSTYPE" == "darwin"* ]]; then
-	sed -i '' -e "s/INPUT_FLAGD_VERSION/${FLAGD_VERSION}/g" apis/core/v1alpha1/flagsourceconfiguration_types.go
-fi
diff --git a/renovate.json b/renovate.json
index 736960a2c..68deacad0 100644
--- a/renovate.json
+++ b/renovate.json
@@ -15,8 +15,8 @@
   },
   "regexManagers": [
     {
-      "fileMatch": ["^Makefile$"],
-      "matchStrings": ["FLAGD_VERSION=(?<currentValue>.*?)\\n"],
+      "fileMatch": ["^apis/core/v1alpha1/flagsourceconfiguration_types.go$"],
+      "matchStrings": ["defaultTag\\s*string\\s*= \"(?<currentValue>.*?)\"\\n"],
       "depNameTemplate": "open-feature/flagd",
       "datasourceTemplate": "github-releases"
     },