diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8758808b0..2d53da1d8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,25 @@
 
 All notable changes to this project will be documented in this file. See [standard-version](https://github.com/conventional-changelog/standard-version) for commit guidelines.
 
+## v1.3.0
+
+[compare changes](https://github.com/nuxt/image/compare/v1.2.0...v1.3.0)
+
+### 🚀 Enhancements
+
+- **imagekit:** Replace obsolete overlay syntax with layers ([#1197](https://github.com/nuxt/image/pull/1197))
+- **ipx:** Support nuxt layers ([#1177](https://github.com/nuxt/image/pull/1177))
+
+### 🏡 Chore
+
+- Deduplicate `vue` versions in workspace ([#1202](https://github.com/nuxt/image/pull/1202))
+
+### ❤️ Contributors
+
+- Arkadiusz Sygulski <aareksio@gmail.com>
+- Ankur Dwivedi 
+- Daniel Roe <daniel@roe.dev>
+
 ## v1.2.0
 
 [compare changes](https://github.com/nuxt/image/compare/v1.1.0...v1.2.0)
diff --git a/package.json b/package.json
index 6c2102bf7..f419cd3ba 100755
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@nuxt/image",
-  "version": "1.2.0",
+  "version": "1.3.0",
   "description": "Nuxt Image Module",
   "repository": {
     "type": "git",
@@ -75,4 +75,4 @@
   "engines": {
     "node": "^14.16.0 || >=16.11.0"
   }
-}
+}
\ No newline at end of file