diff --git a/VERSION b/VERSION
new file mode 100644
index 0000000..8d5126f
--- /dev/null
+++ b/VERSION
@@ -0,0 +1 @@
+5.10.2-3-g51926a7-dirty
diff --git a/src/githooks/_post-checkout.sh b/src/githooks/_post-checkout.sh
index cdc43f2..ee3ec44 100755
--- a/src/githooks/_post-checkout.sh
+++ b/src/githooks/_post-checkout.sh
@@ -21,3 +21,10 @@ if test "$GIT_COMMAND" = "rebase"; then
   zz_log s "Skip post-checkout hook during rebase."
   exit 0
 fi
+
+# Update VERSION file with current GitVersion semver
+if [ -f "./update-version.sh" ]; then
+  ./update-version.sh || zz_log w "Failed to update VERSION file"
+else
+  zz_log w "update-version.sh script not found, skipping VERSION file update"
+fi
diff --git a/update-version.sh b/update-version.sh
new file mode 100755
index 0000000..7039f6c
--- /dev/null
+++ b/update-version.sh
@@ -0,0 +1,56 @@
+#!/bin/bash
+# Script to update VERSION file with GitVersion semver
+# This script handles both GitVersion tool and fallback scenarios
+
+set -e
+
+# Define the VERSION file path
+VERSION_FILE="VERSION"
+
+# Function to update VERSION file
+update_version_file() {
+    local version="$1"
+    if [ -n "$version" ]; then
+        echo "$version" > "$VERSION_FILE"
+        echo "Updated VERSION file to: $version"
+    else
+        echo "Warning: Could not determine version"
+    fi
+}
+
+# Function to extract semver from git describe
+extract_semver_from_describe() {
+    local describe_output="$1"
+    # Extract version from tags ending with a semantic version, e.g.:
+    # feature_larasets_5.10.2-1-g97bdb34 -> 5.10.2-1-g97bdb34
+    # release_5.10.2 -> 5.10.2
+    # v5.10.2 -> 5.10.2
+    # The regex matches any tag ending with X.Y.Z (optionally with suffixes).
+    echo "$describe_output" | sed -E 's/.*[_v]([0-9]+\.[0-9]+\.[0-9]+([-a-zA-Z0-9\.]*)?)/\1/' | head -1
+}
+
+# Try GitVersion first (if available and working)
+if command -v dotnet-gitversion >/dev/null 2>&1; then
+    # Try to get MajorMinorPatch from GitVersion
+    GITVERSION_OUTPUT=$(dotnet-gitversion -config .gitversion -showvariable MajorMinorPatch 2>/dev/null || echo "")
+    # Check if output is a valid version number (only digits and dots) and not default
+    if [ -n "$GITVERSION_OUTPUT" ] && echo "$GITVERSION_OUTPUT" | grep -qE '^[0-9]+\.[0-9]+\.[0-9]+$'; then
+        update_version_file "$GITVERSION_OUTPUT"
+        exit 0
+    fi
+fi
+
+# Fallback to git describe
+GIT_DESCRIBE=$(git describe --tags --always --dirty 2>/dev/null || echo "")
+if [ -n "$GIT_DESCRIBE" ]; then
+    FALLBACK_VERSION=$(extract_semver_from_describe "$GIT_DESCRIBE")
+    update_version_file "$FALLBACK_VERSION"
+    exit 0
+fi
+
+# Final fallback - keep existing version or use default
+if [ -f "$VERSION_FILE" ]; then
+    echo "Warning: Could not determine new version, keeping existing VERSION file"
+else
+    update_version_file "1.0.0"
+fi
\ No newline at end of file