diff --git a/hack/e2e-setup.sh b/hack/e2e-setup.sh
index d4eac5e..0878a59 100755
--- a/hack/e2e-setup.sh
+++ b/hack/e2e-setup.sh
@@ -32,7 +32,7 @@ set_default_params() {
   KUBEVIRT_CDI_VERSION=${KUBEVIRT_CDI_VERSION:-v1.61.0}
   KUBEVIRT_USE_EMULATION=${KUBEVIRT_USE_EMULATION:-"false"}
 
-  CNAO_VERSION=${CNAO_VERSION:-v0.96.0}
+  CNAO_VERSION=${CNAO_VERSION:-v0.97.0}
 
   REGISTRY_NAME=${REGISTRY_NAME:-kind-registry}
   REGISTRY_PORT=${REGISTRY_PORT:-5001}