diff --git a/.github/workflows/release.yml b/.github/workflows/release.yml
index 9e90aa87..80cb15b4 100644
--- a/.github/workflows/release.yml
+++ b/.github/workflows/release.yml
@@ -1,13 +1,18 @@
 name: Create release PR
 
-run-name: Create release PR for v${{ github.event.inputs.version }}
+run-name: Create release PR for new ${{ github.event.inputs.version }} version
 
 on:
   workflow_dispatch:
     inputs:
       version:
         required: true
-        description: "Version to bump `package.json` to (format: x.y.z)"
+        type: choice
+        description: "What type of release is this"
+        options:
+          - "major"
+          - "minor"
+          - "patch"
       update-language-server: 
         required: true
         description: "Update the language server to the latest version?"
@@ -36,13 +41,17 @@ jobs:
           git config --global user.email "github-actions@github.com"
           git config --global user.name "GitHub Actions"
 
-          git checkout -b release/${{ inputs.version }}
+          NEW_VERSION=$(./script/workflows/increment-version.sh ${{ inputs.version }})
 
-          npm version ${{ inputs.version }} --no-git-tag-version
+          git checkout -b release/$NEW_VERSION
+
+          npm version $NEW_VERSION --no-git-tag-version
           git add package.json package-lock.json
-          git commit -m "Release extension version ${{ inputs.version }}"
+          git commit -m "Release extension version $NEW_VERSION"
+
+          git push --set-upstream origin release/$NEW_VERSION
 
-          git push --set-upstream origin release/${{ inputs.version }}
+          echo "new_version=$NEW_VERSION" >> $GITHUB_ENV
       
       - name: Update language server
         if: ${{ inputs.update-language-server }}
@@ -53,15 +62,15 @@ jobs:
 
       - uses: stefanzweifel/git-auto-commit-action@v4
         with: 
-          branch: release/${{ inputs.version }}
+          branch: release/${{ env.new_version }}
         if: ${{ inputs.update-language-server }}
 
       - name: Create PR
         run: |
           gh pr create \
-            --title "Release version ${{ inputs.version }}" \
-            --body "Release version ${{ inputs.version }}" \
+            --title "Release version ${{ env.new_version }}" \
+            --body "Release version ${{ env.new_version }}" \
             --base main \
-            --head release/${{ inputs.version }}
+            --head release/${{ env.new_version }}
         env:
           GH_TOKEN: ${{ secrets.GITHUB_TOKEN }}
diff --git a/package-lock.json b/package-lock.json
index 122d2b60..ff8a889a 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "vscode-github-actions",
-  "version": "0.25.6",
+  "version": "0.25.7",
   "lockfileVersion": 2,
   "requires": true,
   "packages": {
     "": {
       "name": "vscode-github-actions",
-      "version": "0.25.6",
+      "version": "0.25.7",
       "license": "MIT",
       "dependencies": {
         "@actions/languageserver": "*",
diff --git a/package.json b/package.json
index 935d3f16..9d32daf0 100644
--- a/package.json
+++ b/package.json
@@ -8,7 +8,7 @@
     "url": "https://github.com/github/vscode-github-actions"
   },
   "description": "GitHub Actions workflows and runs for github.com hosted repositories in VS Code",
-  "version": "0.25.6",
+  "version": "0.25.7",
   "engines": {
     "vscode": "^1.72.0",
     "node": ">= 16"
diff --git a/script/workflows/increment-version.sh b/script/workflows/increment-version.sh
new file mode 100755
index 00000000..5f00aa22
--- /dev/null
+++ b/script/workflows/increment-version.sh
@@ -0,0 +1,24 @@
+#!/bin/bash
+
+VERSION=$(cat package.json | jq -r '.version')
+
+MAJOR=$(echo $VERSION | cut -d. -f1) 
+MINOR=$(echo $VERSION | cut -d. -f2)
+PATCH=$(echo $VERSION | cut -d. -f3)
+
+if [ "$1" == "major" ]; then
+  MAJOR=$((MAJOR+1))
+  MINOR=0
+  PATCH=0
+elif [ "$1" == "minor" ]; then
+  MINOR=$((MINOR+1))
+  PATCH=0
+elif [ "$1" == "patch" ]; then
+  PATCH=$((PATCH+1))
+else
+  echo "Invalid version type. Use 'major', 'minor' or 'patch'"
+  exit 1
+fi
+
+NEW_VERSION="$MAJOR.$MINOR.$PATCH"
+echo $NEW_VERSION