diff --git a/lib/modules/manager/gitlabci/extract.spec.ts b/lib/modules/manager/gitlabci/extract.spec.ts
index cd218f108b0f2e..16d19ea37b9e59 100644
--- a/lib/modules/manager/gitlabci/extract.spec.ts
+++ b/lib/modules/manager/gitlabci/extract.spec.ts
@@ -167,6 +167,56 @@ describe('modules/manager/gitlabci/extract', () => {
       ]);
     });
 
+    it('extract images from dependency proxy', () => {
+      const res = extractPackageFile(`
+        image:
+          name: $\{CI_DEPENDENCY_PROXY_GROUP_IMAGE_PREFIX}/renovate/renovate:31.65.1-slim
+
+        services:
+          - $CI_DEPENDENCY_PROXY_DIRECT_GROUP_IMAGE_PREFIX/mariadb:10.4.11
+          - name: $CI_DEPENDENCY_PROXY_GROUP_IMAGE_PREFIX/other/image1:1.0.0
+            alias: imagealias1
+      `);
+      expect(res.deps).toEqual([
+        {
+          autoReplaceStringTemplate:
+            '${CI_DEPENDENCY_PROXY_GROUP_IMAGE_PREFIX}/' +
+            '{{depName}}{{#if newValue}}:{{newValue}}{{/if}}{{#if newDigest}}@{{newDigest}}{{/if}}',
+          currentDigest: undefined,
+          currentValue: '31.65.1-slim',
+          datasource: 'docker',
+          depName: 'renovate/renovate',
+          depType: 'image-name',
+          replaceString:
+            '${CI_DEPENDENCY_PROXY_GROUP_IMAGE_PREFIX}/renovate/renovate:31.65.1-slim',
+        },
+        {
+          autoReplaceStringTemplate:
+            '$CI_DEPENDENCY_PROXY_DIRECT_GROUP_IMAGE_PREFIX/' +
+            '{{depName}}{{#if newValue}}:{{newValue}}{{/if}}{{#if newDigest}}@{{newDigest}}{{/if}}',
+          currentDigest: undefined,
+          currentValue: '10.4.11',
+          datasource: 'docker',
+          depName: 'mariadb',
+          depType: 'service-image',
+          replaceString:
+            '$CI_DEPENDENCY_PROXY_DIRECT_GROUP_IMAGE_PREFIX/mariadb:10.4.11',
+        },
+        {
+          autoReplaceStringTemplate:
+            '$CI_DEPENDENCY_PROXY_GROUP_IMAGE_PREFIX/' +
+            '{{depName}}{{#if newValue}}:{{newValue}}{{/if}}{{#if newDigest}}@{{newDigest}}{{/if}}',
+          currentDigest: undefined,
+          currentValue: '1.0.0',
+          datasource: 'docker',
+          depName: 'other/image1',
+          depType: 'service-image',
+          replaceString:
+            '$CI_DEPENDENCY_PROXY_GROUP_IMAGE_PREFIX/other/image1:1.0.0',
+        },
+      ]);
+    });
+
     it('extracts from image', () => {
       let expectedRes = {
         autoReplaceStringTemplate:
diff --git a/lib/modules/manager/gitlabci/extract.ts b/lib/modules/manager/gitlabci/extract.ts
index 1e0663ea2ef066..510734f0144744 100644
--- a/lib/modules/manager/gitlabci/extract.ts
+++ b/lib/modules/manager/gitlabci/extract.ts
@@ -3,10 +3,9 @@ import { load } from 'js-yaml';
 import { logger } from '../../../logger';
 import { readLocalFile } from '../../../util/fs';
 import { regEx } from '../../../util/regex';
-import { getDep } from '../dockerfile/extract';
 import type { ExtractConfig, PackageDependency, PackageFile } from '../types';
 import type { GitlabPipeline, Image, Job, Services } from './types';
-import { replaceReferenceTags } from './utils';
+import { getGitlabDep, replaceReferenceTags } from './utils';
 
 export function extractFromImage(
   image: Image | undefined
@@ -16,10 +15,10 @@ export function extractFromImage(
   }
   let dep: PackageDependency | null = null;
   if (is.string(image)) {
-    dep = getDep(image);
+    dep = getGitlabDep(image);
     dep.depType = 'image';
   } else if (is.string(image?.name)) {
-    dep = getDep(image.name);
+    dep = getGitlabDep(image.name);
     dep.depType = 'image-name';
   }
   return dep;
@@ -34,11 +33,11 @@ export function extractFromServices(
   const deps: PackageDependency[] = [];
   for (const service of services) {
     if (is.string(service)) {
-      const dep = getDep(service);
+      const dep = getGitlabDep(service);
       dep.depType = 'service-image';
       deps.push(dep);
     } else if (is.string(service?.name)) {
-      const dep = getDep(service.name);
+      const dep = getGitlabDep(service.name);
       dep.depType = 'service-image';
       deps.push(dep);
     }
diff --git a/lib/modules/manager/gitlabci/readme.md b/lib/modules/manager/gitlabci/readme.md
index a40d170e7d0325..4ffb22a747b860 100644
--- a/lib/modules/manager/gitlabci/readme.md
+++ b/lib/modules/manager/gitlabci/readme.md
@@ -1,3 +1,5 @@
 Extracts Docker dependencies from `gitlab-ci.yml` files.
 
 If you need to change the versioning format, read the [versioning](https://docs.renovatebot.com/modules/versioning/) documentation to learn more.
+
+If you use Gitlab Dependency Proxy usage of the predefined variables `CI_DEPENDENCY_PROXY_GROUP_IMAGE_PREFIX` and `CI_DEPENDENCY_PROXY_DIRECT_GROUP_IMAGE_PREFIX` as image prefix is supported.
diff --git a/lib/modules/manager/gitlabci/utils.spec.ts b/lib/modules/manager/gitlabci/utils.spec.ts
new file mode 100644
index 00000000000000..73ded7c8d61300
--- /dev/null
+++ b/lib/modules/manager/gitlabci/utils.spec.ts
@@ -0,0 +1,56 @@
+import { getGitlabDep } from './utils';
+
+describe('modules/manager/gitlabci/utils', () => {
+  describe('getGitlabDep', () => {
+    const defaultAutoReplaceStringTemplate =
+      '{{depName}}{{#if newValue}}:{{newValue}}{{/if}}{{#if newDigest}}@{{newDigest}}{{/if}}';
+
+    it.each`
+      name                           | imagePrefix
+      ${'no variable'}               | ${''}
+      ${'group proxy'}               | ${'$CI_DEPENDENCY_PROXY_GROUP_IMAGE_PREFIX/'}
+      ${'group proxy with brackets'} | ${'${CI_DEPENDENCY_PROXY_GROUP_IMAGE_PREFIX}/'}
+      ${'direct group proxy'}        | ${'$CI_DEPENDENCY_PROXY_DIRECT_GROUP_IMAGE_PREFIX/'}
+    `('offical image - $name', ({ imagePrefix }: { imagePrefix: string }) => {
+      const imageName = `${imagePrefix}mariadb:10.4.11`;
+      expect(getGitlabDep(imageName)).toMatchObject({
+        autoReplaceStringTemplate:
+          imagePrefix + defaultAutoReplaceStringTemplate,
+        replaceString: imageName,
+        depName: 'mariadb',
+        currentValue: '10.4.11',
+      });
+    });
+
+    it.each`
+      name                           | imagePrefix
+      ${'no variable'}               | ${''}
+      ${'group proxy'}               | ${'$CI_DEPENDENCY_PROXY_GROUP_IMAGE_PREFIX/'}
+      ${'group proxy with brackets'} | ${'${CI_DEPENDENCY_PROXY_GROUP_IMAGE_PREFIX}/'}
+      ${'direct group proxy'}        | ${'$CI_DEPENDENCY_PROXY_DIRECT_GROUP_IMAGE_PREFIX/'}
+    `(
+      'image with organization - $name',
+      ({ imagePrefix }: { imagePrefix: string }) => {
+        const imageName = `${imagePrefix}renovate/renovate:19.70.8-slim`;
+        expect(getGitlabDep(imageName)).toMatchObject({
+          autoReplaceStringTemplate:
+            imagePrefix + defaultAutoReplaceStringTemplate,
+          replaceString: imageName,
+          depName: 'renovate/renovate',
+          currentValue: '19.70.8-slim',
+        });
+      }
+    );
+
+    it('no Docker hub', () => {
+      expect(
+        getGitlabDep('quay.io/prometheus/node-exporter:v1.3.1')
+      ).toMatchObject({
+        autoReplaceStringTemplate: defaultAutoReplaceStringTemplate,
+        replaceString: 'quay.io/prometheus/node-exporter:v1.3.1',
+        depName: 'quay.io/prometheus/node-exporter',
+        currentValue: 'v1.3.1',
+      });
+    });
+  });
+});
diff --git a/lib/modules/manager/gitlabci/utils.ts b/lib/modules/manager/gitlabci/utils.ts
index 28124d3179d82e..39b30691354692 100644
--- a/lib/modules/manager/gitlabci/utils.ts
+++ b/lib/modules/manager/gitlabci/utils.ts
@@ -1,3 +1,7 @@
+import { regEx } from '../../../util/regex';
+import { getDep } from '../dockerfile/extract';
+import type { PackageDependency } from '../types';
+
 const re = /!reference \[(.*?)\]/g;
 
 /**
@@ -10,3 +14,24 @@ export function replaceReferenceTags(content: string): string {
   const res = content.replace(re, '');
   return res;
 }
+
+const depProxyRe = regEx(
+  `(?<prefix>\\$\\{?CI_DEPENDENCY_PROXY_(?:DIRECT_)?GROUP_IMAGE_PREFIX\\}?\\/)(?<depName>.+)`
+);
+
+/**
+ * Get image dependencies respecting Gitlab Dependency Proxy
+ * @param imageName as used in .gitlab-ci.yml file
+ * @return package dependency for the image
+ */
+export function getGitlabDep(imageName: string): PackageDependency {
+  const match = depProxyRe.exec(imageName);
+  if (match?.groups) {
+    const dep = { ...getDep(match.groups.depName), replaceString: imageName };
+    dep.autoReplaceStringTemplate =
+      match.groups.prefix + dep.autoReplaceStringTemplate;
+    return dep;
+  } else {
+    return getDep(imageName);
+  }
+}