diff --git a/RELEASE.md b/RELEASE.md
index 644f81ebc..481e7ac67 100644
--- a/RELEASE.md
+++ b/RELEASE.md
@@ -5,7 +5,3 @@ Launch the [release script](make-release.sh) and wait until [CI Job](https://ci.
 ```
 ./make-release.sh --repo git@github.com:eclipse/che-theia --version <VERSION_TO_RELEASE> --trigger-release
 ```
-
-**NOTE:** before doing a minor release (x.y.0), update [`THEIA_VERSION`](THEIA_VERSION) file with a required version of Eclipse Theia.
-
-Go to [npm registry](https://www.npmjs.com/package/@theia/core) and pick the latest `next` Theia version, e.g. `0.15.0-next.15995cd0`
diff --git a/THEIA_VERSION b/THEIA_VERSION
deleted file mode 100644
index 1ed7a3b2a..000000000
--- a/THEIA_VERSION
+++ /dev/null
@@ -1 +0,0 @@
-1.1.0-next.9bc52ad1
diff --git a/build.include b/build.include
index bfeef857b..bd39547ae 100644
--- a/build.include
+++ b/build.include
@@ -13,6 +13,7 @@ set -u
 IMAGE_TAG="next"
 THEIA_VERSION="master"
 THEIA_BRANCH="master"
+THEIA_COMMIT_SHA=
 THEIA_GIT_REFS="refs\\/heads\\/master"
 THEIA_DOCKER_IMAGE_VERSION=
 
@@ -78,8 +79,8 @@ buildImages() {
     GITHUB_TOKEN_ARG="GITHUB_TOKEN=${GITHUB_TOKEN:-}"
     echo "Building image in ${image_dir}"
      if [ "$image_dir" == "dockerfiles/theia" ]; then
-       bash $(pwd)/$image_dir/build.sh --build-args:${GITHUB_TOKEN_ARG},THEIA_VERSION=${THEIA_VERSION} --tag:${IMAGE_TAG} --branch:${THEIA_BRANCH} --git-ref:${THEIA_GIT_REFS} ${FILTERED_ARGS}
-       elif [ "$image_dir" == "dockerfiles/theia-dev" ]; then
+       bash $(pwd)/$image_dir/build.sh --build-args:${GITHUB_TOKEN_ARG},THEIA_VERSION=${THEIA_VERSION},THEIA_COMMIT_SHA=${THEIA_COMMIT_SHA} --tag:${IMAGE_TAG} --branch:${THEIA_BRANCH} --git-ref:${THEIA_GIT_REFS} ${FILTERED_ARGS}
+     elif [ "$image_dir" == "dockerfiles/theia-dev" ]; then
        bash $(pwd)/$image_dir/build.sh --build-arg:${GITHUB_TOKEN_ARG} --tag:${IMAGE_TAG} ${FILTERED_ARGS}
      else
        bash $(pwd)/$image_dir/build.sh --build-arg:${GITHUB_TOKEN_ARG} --tag:${IMAGE_TAG} ${FILTERED_ARGS}
diff --git a/dockerfiles/theia/Dockerfile b/dockerfiles/theia/Dockerfile
index 9102fdfe8..bf7465508 100644
--- a/dockerfiles/theia/Dockerfile
+++ b/dockerfiles/theia/Dockerfile
@@ -23,6 +23,8 @@ ARG THEIA_GITHUB_REPO=eclipse-theia/theia
 # Define upstream version of theia to use
 ARG THEIA_VERSION=master
 
+ARG THEIA_COMMIT_SHA=''
+
 ENV NODE_OPTIONS="--max-old-space-size=4096"
 
 #{IF:DO_REMOTE_CHECK}
diff --git a/dockerfiles/theia/docker/alpine/builder-clone-theia.dockerfile b/dockerfiles/theia/docker/alpine/builder-clone-theia.dockerfile
index 3e6f94859..833716da8 100644
--- a/dockerfiles/theia/docker/alpine/builder-clone-theia.dockerfile
+++ b/dockerfiles/theia/docker/alpine/builder-clone-theia.dockerfile
@@ -1,2 +1,3 @@
 # Clone theia and keep source code in home
-RUN git clone --branch ${GIT_BRANCH_NAME} --single-branch --depth 1 https://github.com/${THEIA_GITHUB_REPO} ${HOME}/theia-source-code
+RUN git clone --branch ${GIT_BRANCH_NAME} --single-branch https://github.com/${THEIA_GITHUB_REPO} ${HOME}/theia-source-code && \
+    cd ${HOME}/theia-source-code && git checkout ${THEIA_COMMIT_SHA}
diff --git a/dockerfiles/theia/docker/ubi8/builder-clone-theia.dockerfile b/dockerfiles/theia/docker/ubi8/builder-clone-theia.dockerfile
index 3e6f94859..833716da8 100644
--- a/dockerfiles/theia/docker/ubi8/builder-clone-theia.dockerfile
+++ b/dockerfiles/theia/docker/ubi8/builder-clone-theia.dockerfile
@@ -1,2 +1,3 @@
 # Clone theia and keep source code in home
-RUN git clone --branch ${GIT_BRANCH_NAME} --single-branch --depth 1 https://github.com/${THEIA_GITHUB_REPO} ${HOME}/theia-source-code
+RUN git clone --branch ${GIT_BRANCH_NAME} --single-branch https://github.com/${THEIA_GITHUB_REPO} ${HOME}/theia-source-code && \
+    cd ${HOME}/theia-source-code && git checkout ${THEIA_COMMIT_SHA}
diff --git a/make-release.sh b/make-release.sh
index 1ebec2e9d..d1ddaef2d 100755
--- a/make-release.sh
+++ b/make-release.sh
@@ -66,38 +66,24 @@ if [[ "${BASEBRANCH}" != "${BRANCH}" ]]; then
 fi
 
 apply_files_edits () {
-  read THEIA_VERSION < THEIA_VERSION
+  THEIA_VERSION=$(curl --silent http://registry.npmjs.org/-/package/@theia/core/dist-tags | sed 's/.*"next":"\(.*\)".*/\1/')
   if [[ ! ${THEIA_VERSION} ]]; then
-    echo "THEIA_VERSION file is not found"; echo
+    echo "Failed to get Theia next version from npmjs.org"; echo
     exit 1
   fi
 
-  # Che Theia release may depend on Theia next or latest
-  if [[ ${THEIA_VERSION} == *"-next."* ]]; then
-    THEIA_PATCHES_DIR=master
-    THEIA_BRANCH=master
-    THEIA_GIT_REFS=refs\\\\\\\\/heads\\\\\\\\/master
-  else 
-    THEIA_PATCHES_DIR=${THEIA_VERSION}
-    THEIA_BRANCH=v${THEIA_VERSION}
-    THEIA_GIT_REFS=refs\\\\\\\\/tags\\\\\\\\/v${THEIA_VERSION}
-  fi
-
   # update config for Che Theia generator
   sed -i che-theia-init-sources.yml -e "/checkoutTo:/s/master/${BRANCH}/"
 
-  # set the variables for an image build
+  # set the variables for building the images
   sed -i build.include \
       -e 's/IMAGE_TAG="..*"/IMAGE_TAG="latest"/' \
-      -e 's/THEIA_VERSION="..*"/THEIA_VERSION="'${THEIA_PATCHES_DIR}'"/' \
-      -e 's/THEIA_BRANCH="..*"/THEIA_BRANCH="'${THEIA_BRANCH}'"/' \
-      -e 's#THEIA_GIT_REFS="..*"#THEIA_GIT_REFS="'${THEIA_GIT_REFS}'"#' \
+      -e 's/^THEIA_COMMIT_SHA=$/THEIA_COMMIT_SHA="'${THEIA_VERSION##*.}'"/' \
       -e 's/THEIA_DOCKER_IMAGE_VERSION=.*/THEIA_DOCKER_IMAGE_VERSION="'${VERSION}'"/'
 
   # Update extensions/plugins package.json files:
   # - set packages' version
-  # - update versions of Theia dependencies
-  # - update versions of Che dependencies
+  # - update versions of Theia and Che dependencies
   for m in "extensions/*" "plugins/*"; do
     sed -i ./${m}/package.json \
         -r -e 's/("version": )(".*")/\1"'$VERSION'"/' \
@@ -105,28 +91,9 @@ apply_files_edits () {
         -r -e '/@eclipse-che\/api|@eclipse-che\/workspace-client|@eclipse-che\/workspace-telemetry-client/!s/("@eclipse-che\/..*": )(".*")/\1"'$VERSION'"/'
   done
 
-  if [[ ${THEIA_BRANCH} == master ]]; then
-    THEIA_COMMIT_SHA=${THEIA_VERSION##*.}
-
-    if [[ ${VERSION} == *".0" ]]; then
-      # if depending on Theia next (from master), need to checkout to the corresponding commit
-      for m in "dockerfiles/theia/docker/alpine/builder-clone-theia.dockerfile" "dockerfiles/theia/docker/ubi8/builder-clone-theia.dockerfile"; do
-        sed -i ./${m} \
-            -e 's/ --depth 1//' \
-            -e '/RUN git clone/s#$# \&\& cd ${HOME}/theia-source-code \&\& git checkout '${THEIA_COMMIT_SHA}'#'
-      done
-
-      sed -i dockerfiles/theia/docker/ubi8/builder-clone-theia.dockerfile \
-          -e '/RUN git clone/s#$# \&\& cd ${HOME} \&\& tar zcf ${HOME}/theia-source-code.tgz theia-source-code#'
-    else
-      # Doing a .z release. So, both (alpine/ubi8) builder-clone-theia.dockerfile are already patched.
-      # Just need to ensure that using a correct $THEIA_COMMIT_SHA
-      # as .z release may be based on a different Theia version comparing to a .0 release.
-      sed -i dockerfiles/theia/docker/alpine/builder-clone-theia.dockerfile \
-          -r -e 's/( git checkout )(.*)/\1'${THEIA_COMMIT_SHA}'/'
-      sed -i dockerfiles/theia/docker/ubi8/builder-clone-theia.dockerfile \
-          -r -e 's/( git checkout )(.*)( \&\& cd )/\1'${THEIA_COMMIT_SHA}'\3/'
-    fi
+  if [[ ${VERSION} == *".0" ]]; then
+    sed -i dockerfiles/theia/docker/ubi8/builder-clone-theia.dockerfile \
+        -e '$ a RUN cd ${HOME} \&\& tar zcf ${HOME}/theia-source-code.tgz theia-source-code'
   fi
 }