diff --git a/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/files/flannel-docker-opts.service b/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/files/flannel-docker-opts.service
index 853308fd95..5e917fc4f4 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/files/flannel-docker-opts.service
+++ b/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/files/flannel-docker-opts.service
@@ -10,7 +10,7 @@ Before=docker.service
 Type=oneshot
 TimeoutStartSec=60
 
-Environment="FLANNEL_IMAGE_TAG=v0.6.2"
+Environment="FLANNEL_IMAGE_TAG=v0.7.0"
 Environment="RKT_RUN_ARGS=--uuid-file-save=/var/lib/coreos/flannel-wrapper2.uuid"
 Environment="FLANNEL_IMAGE_ARGS=--exec=/opt/bin/mk-docker-opts.sh"
 
diff --git a/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/flannel-wrapper-0.7.0-r1.ebuild b/sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/flannel-wrapper-0.7.0-r2.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/flannel-wrapper-0.7.0-r1.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-admin/flannel-wrapper/flannel-wrapper-0.7.0-r2.ebuild