diff --git a/package/binutils/Config.in.host b/package/binutils/Config.in.host
index 6d2b436d6b..7a54660c46 100644
--- a/package/binutils/Config.in.host
+++ b/package/binutils/Config.in.host
@@ -10,7 +10,7 @@ config BR2_PACKAGE_BINUTILS_HAS_LIBSFRAME
 
 choice
 	prompt "Binutils Version"
-	default BR2_BINUTILS_VERSION_2_39_X if !BR2_arc
+	default BR2_BINUTILS_VERSION_2_40_X if !BR2_arc
 	default BR2_BINUTILS_VERSION_ARC if BR2_arc
 	help
 	  Select the version of binutils you wish to use.
diff --git a/package/binutils/binutils.mk b/package/binutils/binutils.mk
index 48a036651c..ecb00077d6 100644
--- a/package/binutils/binutils.mk
+++ b/package/binutils/binutils.mk
@@ -11,7 +11,7 @@ ifeq ($(BINUTILS_VERSION),)
 ifeq ($(BR2_arc),y)
 BINUTILS_VERSION = arc-2020.09-release
 else
-BINUTILS_VERSION = 2.39
+BINUTILS_VERSION = 2.40
 endif
 endif # BINUTILS_VERSION