diff --git a/VERSION b/VERSION
index 23945303054..e94864e8826 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-2.3.3.0 1
+2.3.4.0 0.1.rc1
diff --git a/lib/ansible/release.py b/lib/ansible/release.py
index 22d5acb31de..81e63c22b0b 100644
--- a/lib/ansible/release.py
+++ b/lib/ansible/release.py
@@ -19,5 +19,5 @@
 from __future__ import (absolute_import, division, print_function)
 __metaclass__ = type
 
-__version__ = '2.3.3.0'
+__version__ = '2.3.4.0'
 __author__  = 'Ansible, Inc.'