diff --git a/NEWS b/NEWS
index 8ff7c1d..048fd6d 100644
--- a/NEWS
+++ b/NEWS
@@ -1,6 +1,13 @@
 Changes from previous version of pkgconf
 ========================================
 
+Changes from 1.3.7 to 1.3.8:
+----------------------------
+
+* Enhancements:
+  - improved compatibility with freedesktop.org pkg-config's ${pc_sysrootdir}
+    usage pattern.
+
 Changes from 1.3.6 to 1.3.7:
 ----------------------------
 
diff --git a/configure.ac b/configure.ac
index 296f720..2972b69 100644
--- a/configure.ac
+++ b/configure.ac
@@ -12,7 +12,7 @@ dnl implied.  In no event shall the authors be liable for any damages arising
 dnl from the use of this software.
 
 AC_PREREQ([2.68])
-AC_INIT([pkgconf], [1.3.7], [http://github.com/pkgconf/pkgconf/issues])
+AC_INIT([pkgconf], [1.3.8], [http://github.com/pkgconf/pkgconf/issues])
 AC_CONFIG_SRCDIR([main.c])
 AC_CONFIG_HEADERS([libpkgconf/config.h])
 AC_CHECK_FUNCS([strlcpy strlcat strndup cygwin_conv_path])