diff --git a/changelog/changes/2022-02-22-configurable-image-compression.md b/changelog/changes/2022-02-22-configurable-image-compression.md
new file mode 100644
index 0000000000..a06c7a31eb
--- /dev/null
+++ b/changelog/changes/2022-02-22-configurable-image-compression.md
@@ -0,0 +1,2 @@
+- Image compression format is now configurable. Supported formats are: bz2, gz, zip, none. Selecting the image format can now be done by passing the ```--image_compression_format``` option to ```image_to_vm.sh```
+- The Jenkins ```vms.sh``` script sets the image compression format to ```gz``` for OpenStack images, which allows Glance to directly consume the images by simply passing in the URL of the image.
diff --git a/jenkins/vms.sh b/jenkins/vms.sh
index 4beb63653e..06e3972eb2 100755
--- a/jenkins/vms.sh
+++ b/jenkins/vms.sh
@@ -113,6 +113,12 @@ for FORMAT in ${FORMATS}; do
     UPLOAD_ROOT=${UPLOAD_PRIVATE_ROOT}
   fi
 
+  COMPRESSION_FORMAT="bz2"
+
+  if [[ "${FORMAT}" =~ ^(openstack|openstack_mini)$ ]];then
+    COMPRESSION_FORMAT="gz"
+  fi
+
   script image_to_vm.sh \
     --board="${BOARD}" \
     --format="${FORMAT}" \
@@ -124,6 +130,7 @@ for FORMAT in ${FORMATS}; do
     --sign_digests="${SIGNING_USER}" \
     --download_root="${DOWNLOAD_ROOT}" \
     --upload_root="${UPLOAD_ROOT}" \
+    --image_compression_format="${COMPRESSION_FORMAT}"
     --upload \
     ${PRIVATE_UPLOAD_OPT}
 done