diff --git a/.github/workflows/UpdateGearDependency.yml b/.github/workflows/UpdateGearDependency.yml
index 880b142bb..79faecb05 100644
--- a/.github/workflows/UpdateGearDependency.yml
+++ b/.github/workflows/UpdateGearDependency.yml
@@ -25,14 +25,17 @@ jobs:
     - name: Install GitPython
       run: |
         python -m pip install --upgrade pip
-        pip install gitpython
+        pip install requests packaging gitpython
 
     - name: Check for new tag and update Cargo.toml
+      env:
+        GITHUB_TOKEN: ${{ secrets.UPDATE_GEAR_TAG_TOKEN }}
       run: |
         python update_cargo_toml.py
         if ! git diff --exit-code; then
           git config user.name "github-actions[bot]"
           git config user.email "41898282+github-actions[bot]@users.noreply.github.com"
-          git add Cargo.toml
-          git commit -m "Update dependencies to latest tag"
+          git add ../contracts/Cargo.toml
+          git commit -m "Update GEAR dependencies to latest tag in contracts"
           git push
+        fi
diff --git a/scripts/update_cargo_toml.py b/scripts/update_cargo_toml.py
new file mode 100644
index 000000000..9bb071516
--- /dev/null
+++ b/scripts/update_cargo_toml.py
@@ -0,0 +1,38 @@
+import re
+import requests
+from packaging import version
+
+# GitHub API URL to get the latest tags
+GEAR_REPO_TAGS_URL = "https://api.github.com/repos/gear-tech/gear/tags"
+
+# ABSOLUTE PATH to cargo file
+CARGO_FILE_PATH = '../contracts/Cargo.toml'
+
+def get_latest_semver_tag():
+    response = requests.get(GEAR_REPO_TAGS_URL)
+    response.raise_for_status()
+    tags = response.json()
+    # Filter out tags that are not valid semantic versions
+    valid_tags = [tag['name'] for tag in tags if re.match(r'^v?\d+\.\d+\.\d+$', tag['name'])]
+    # Sort the valid tags by version
+    valid_tags.sort(key=lambda s: version.parse(s.lstrip('v')), reverse=True)
+    return valid_tags[0] if valid_tags else None
+
+def update_cargo_toml(file_path, new_version):
+    with open(file_path, 'r') as file:
+        content = file.read()
+
+    content = re.sub(r'gstd = ".*?"', f'gstd = "{new_version}"', content)
+    content = re.sub(r'gear-wasm-builder = ".*?"', f'gear-wasm-builder = "{new_version}"', content)
+    content = re.sub(r'gmeta = ".*?"', f'gmeta = "{new_version}"', content)
+    content = re.sub(r'gclient = ".*?"', f'gclient = "{new_version}"', content)
+    content = re.sub(r'gtest = { git = "https://github.com/gear-tech/gear", tag = ".*?" }', f'gtest = {{ git = "https://github.com/gear-tech/gear", tag = "v{new_version}" }}', content)
+    content = re.sub(r'gear-core = ".*?"', f'gear-core = "{new_version}"', content)
+
+    with open(file_path, 'w') as file:
+        file.write(content)
+
+if __name__ == "__main__":
+    new_version = get_latest_semver_tag().lstrip('v')
+    if new_version:
+        update_cargo_toml('../contracts/Cargo.toml', new_version)