diff --git a/level_zero/core/source/driver/driver_handle_imp.cpp b/level_zero/core/source/driver/driver_handle_imp.cpp
index ed0e0b5b03..4a613c8291 100644
--- a/level_zero/core/source/driver/driver_handle_imp.cpp
+++ b/level_zero/core/source/driver/driver_handle_imp.cpp
@@ -90,7 +90,7 @@ NEO::SVMAllocsManager *DriverHandleImp::getSvmAllocsManager() {
 }
 
 ze_result_t DriverHandleImp::getApiVersion(ze_api_version_t *version) {
-    *version = ZE_API_VERSION_1_2;
+    *version = ZE_API_VERSION_1_3;
     return ZE_RESULT_SUCCESS;
 }
 
diff --git a/level_zero/core/test/unit_tests/sources/driver/test_driver.cpp b/level_zero/core/test/unit_tests/sources/driver/test_driver.cpp
index 6589d6cecf..fd2eee1522 100644
--- a/level_zero/core/test/unit_tests/sources/driver/test_driver.cpp
+++ b/level_zero/core/test/unit_tests/sources/driver/test_driver.cpp
@@ -1,5 +1,5 @@
 /*
- * Copyright (C) 2020-2021 Intel Corporation
+ * Copyright (C) 2020-2022 Intel Corporation
  *
  * SPDX-License-Identifier: MIT
  *
@@ -566,7 +566,7 @@ TEST_F(DriverHandleTest, whenQueryingForApiVersionThenExpectedVersionIsReturned)
     ze_api_version_t version = {};
     ze_result_t result = driverHandle->getApiVersion(&version);
     EXPECT_EQ(ZE_RESULT_SUCCESS, result);
-    EXPECT_EQ(ZE_API_VERSION_1_2, version);
+    EXPECT_EQ(ZE_API_VERSION_1_3, version);
 }
 
 TEST_F(DriverHandleTest, whenQueryingForDevicesWithCountGreaterThanZeroAndNullDevicePointerThenNullHandleIsReturned) {
diff --git a/level_zero/doc/RELEASENOTES_CORE.md b/level_zero/doc/RELEASENOTES_CORE.md
index 32f265ff1c..e2ada15d04 100644
--- a/level_zero/doc/RELEASENOTES_CORE.md
+++ b/level_zero/doc/RELEASENOTES_CORE.md
@@ -6,6 +6,37 @@ SPDX-License-Identifier: MIT
 
 -->
 
+# Release Notes v1.3
+
+Level Zero Core API.
+
+January 2022
+
+## Changes in this release:
+
+### Implict Scaling
+
+Implicit scaling has been enabled by default on Level Zero on Xe HPC (PVC) B and later steppings. The `EnableImplicitScaling` debug key may be used to enable (`EnableImplicitScaling=1`) or disable (`EnableImplicitScaling=0`) implicit scaling on on Xe HPC and other multi-tile architectures.
+
+### [Blocking Free](https://spec.oneapi.io/level-zero/latest/core/api.html#zememfreeext)
+
+The blocking free memory policy has been implemented for `zeMemFreeExt` extension. Defer free policy will be added in upcoming releases.
+
+### [PCI Properties Extension](https://spec.oneapi.io/level-zero/latest/core/EXT_PCIProperties.html#pci-properties-extension)
+
+Support for PCI properties extension has been added via `zeDevicePciGetPropertiesExt` interface. This currently provides access to device's BDF address only. Device bandwidth property will be exposed in future based on support from underlying components
+
+### [Memory Compression Hints](https://spec.oneapi.io/level-zero/latest/core/EXT_MemoryCompressionHints.html#memory-compression-hints-extension)
+
+Memory compression hints for shared and device memory allocations and images have been added.
+
+### Sampler Address Modes Fix
+
+Level Zero driver had a bug in the implementation of the ZE_SAMPLER_ADDRESS_MODE_CLAMP_TO_BORDER and ZE_SAMPLER_ADDRESS_MODE_CLAMP address modes, where this were being implemented invertedly. This is now fixed and users can use driver's version to determine which address mode to use. Details on how DPC++ is handling this can be found in:
+
+[https://github.com/intel/llvm/blob/756c2e8fb45e44b51b32bd8a22b3c325f17bb5c9/sycl/plugins/level_zero/pi_level_zero.cpp#L5264?]
+
+
 # Release Notes v1.2
 
 Level Zero Core API.
diff --git a/version.cmake b/version.cmake
index 0ed54a114c..51dbc59324 100644
--- a/version.cmake
+++ b/version.cmake
@@ -1,5 +1,5 @@
 #
-# Copyright (C) 2018-2021 Intel Corporation
+# Copyright (C) 2018-2022 Intel Corporation
 #
 # SPDX-License-Identifier: MIT
 #
@@ -79,4 +79,4 @@ set(NEO_OCL_DRIVER_VERSION "${NEO_OCL_VERSION_MAJOR}.${NEO_OCL_VERSION_MINOR}.${
 
 # Level-Zero package version
 set(NEO_L0_VERSION_MAJOR 1)
-set(NEO_L0_VERSION_MINOR 2)
+set(NEO_L0_VERSION_MINOR 3)