diff --git a/.github/workflows/tag-and-build.yml b/.github/workflows/tag-and-build.yml
index 038b77b0e..23c71ed74 100644
--- a/.github/workflows/tag-and-build.yml
+++ b/.github/workflows/tag-and-build.yml
@@ -102,6 +102,11 @@ jobs:
         sed -i -E "s/(.*INSTASCALE_VERSION \?= ).*/\1${{ github.event.inputs.instascale-version }}/" Makefile
         sed -i -E "s/(.*KUBERAY_VERSION \?= ).*/\1${{ github.event.inputs.kuberay-version }}/" Makefile
 
+    - name: Update image version in params.env
+      run: |
+        VERSION=${{ github.event.inputs.version }} perl -i -pe 's/:(.*)$/:$ENV{"VERSION"}/' config/manager/params.env
+      shell: bash
+
     - name: Login to Quay.io
       uses: redhat-actions/podman-login@v1
       with:
@@ -134,7 +139,7 @@ jobs:
       uses: stefanzweifel/git-auto-commit-action@v4
       with:
         commit_message: Update dependency versions for release ${{ github.event.inputs.version }}
-        file_pattern: 'README.md *.yaml Makefile go.mod go.sum'
+        file_pattern: 'README.md *.yaml Makefile go.mod go.sum *.env'
         create_branch: true
         branch: ${{ env.PR_BRANCH_NAME }}
 
diff --git a/Makefile b/Makefile
index 3f0d0f52c..c3fd37b28 100644
--- a/Makefile
+++ b/Makefile
@@ -198,7 +198,7 @@ uninstall: manifests kustomize ## Uninstall CRDs from the K8s cluster specified
 
 .PHONY: deploy
 deploy: manifests kustomize ## Deploy controller to the K8s cluster specified in ~/.kube/config.
-	cd config/manager && $(KUSTOMIZE) edit set image controller=${IMG}
+	cd config/manager && IMAGE=$(IMG) perl -i -pe 's/codeflare-operator-controller-image=(.*)$$/codeflare-operator-controller-image=$$ENV{"IMAGE"}/' params.env
 	$(KUSTOMIZE) build config/${ENV} | kubectl apply -f -
 	git restore config/*
 
@@ -283,8 +283,8 @@ validate-bundle: install-operator-sdk
 
 .PHONY: bundle
 bundle: manifests kustomize install-operator-sdk ## Generate bundle manifests and metadata, then validate generated files.
+	cd config/manager && IMAGE=$(IMG) perl -i -pe 's/codeflare-operator-controller-image=(.*)$$/codeflare-operator-controller-image=$$ENV{"IMAGE"}/' params.env
 	$(OPERATOR_SDK) generate kustomize manifests -q
-	cd config/manager && $(KUSTOMIZE) edit set image controller=$(IMG)
 	cd config/manifests && $(KUSTOMIZE) edit add patch --patch '[{"op":"add", "path":"/metadata/annotations/containerImage", "value": "$(IMG)" }]' --kind ClusterServiceVersion
 	cd config/manifests && $(KUSTOMIZE) edit add patch --patch '[{"op":"add", "path":"/spec/replaces", "value": "codeflare-operator.$(PREVIOUS_VERSION)" }]' --kind ClusterServiceVersion
 	$(KUSTOMIZE) build config/manifests | $(OPERATOR_SDK) generate bundle $(BUNDLE_GEN_FLAGS)
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index 4fe5ccaa3..847eca176 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -3,3 +3,19 @@ resources:
 
 generatorOptions:
   disableNameSuffixHash: true
+
+configMapGenerator:
+- name: stack-config
+  envs:
+    - params.env
+configurations:
+  - params.yaml
+
+vars:
+- name: codeflare_operator_controller_image
+  objref:
+    kind: ConfigMap
+    name: stack-config
+    apiVersion: v1
+  fieldref:
+    fieldpath: data.codeflare-operator-controller-image
diff --git a/config/manager/manager.yaml b/config/manager/manager.yaml
index 8a4f6451b..20a34fe9d 100644
--- a/config/manager/manager.yaml
+++ b/config/manager/manager.yaml
@@ -34,7 +34,7 @@ spec:
       containers:
       - command:
         - /manager
-        image: controller:latest
+        image: $(codeflare_operator_controller_image)
         imagePullPolicy: Always
         name: manager
         securityContext:
diff --git a/config/manager/params.env b/config/manager/params.env
new file mode 100644
index 000000000..8c9de7847
--- /dev/null
+++ b/config/manager/params.env
@@ -0,0 +1 @@
+codeflare-operator-controller-image=quay.io/opendatahub/codeflare-operator:v1.0.1
diff --git a/config/manager/params.yaml b/config/manager/params.yaml
new file mode 100644
index 000000000..43509ff29
--- /dev/null
+++ b/config/manager/params.yaml
@@ -0,0 +1,3 @@
+varReference:
+  - path: spec/template/spec/containers[]/image
+    kind: Deployment
diff --git a/config/manifests/kustomization.yaml b/config/manifests/kustomization.yaml
index 958a9e247..161a419d3 100644
--- a/config/manifests/kustomization.yaml
+++ b/config/manifests/kustomization.yaml
@@ -1,8 +1,9 @@
 # These resources constitute the fully configured set of manifests
 # used to generate the 'manifests/' directory in a bundle.
 resources:
-- bases/codeflare-operator.clusterserviceversion.yaml
 - ../default
 - ../scorecard
+- bases/codeflare-operator.clusterserviceversion.yaml
+
 apiVersion: kustomize.config.k8s.io/v1beta1
 kind: Kustomization