diff --git a/CMakeLists.txt b/CMakeLists.txt
index d1cfa8ee3..603e86ee1 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -4,7 +4,7 @@ cmake_minimum_required(VERSION 3.16)
 set(CMAKE_USER_MAKE_RULES_OVERRIDE_CXX "${CMAKE_CURRENT_SOURCE_DIR}/cmake/cxx_compiler_flags_overrides.cmake")
 
 # Read version from VERSION.txt file
-file(READ "${CMAKE_CURRENT_SOURCE_DIR}/VERSION.txt" Z3_VERSION_FROM_FILE)
+file(READ "${CMAKE_CURRENT_SOURCE_DIR}/scripts/VERSION.txt" Z3_VERSION_FROM_FILE)
 string(STRIP "${Z3_VERSION_FROM_FILE}" Z3_VERSION_FROM_FILE)
 
 project(Z3 VERSION ${Z3_VERSION_FROM_FILE} LANGUAGES CXX)
diff --git a/MODULE.bazel b/MODULE.bazel
index c368221da..48848d27e 100644
--- a/MODULE.bazel
+++ b/MODULE.bazel
@@ -1,6 +1,6 @@
 module(
     name = "z3",
-    version = "4.16.0",  # TODO: Read from VERSION.txt - currently manual sync required
+    version = "4.15.4",  # TODO: Read from VERSION.txt - currently manual sync required
     bazel_compatibility = [">=7.0.0"],
 )
 
diff --git a/VERSION.txt b/scripts/VERSION.txt
similarity index 100%
rename from VERSION.txt
rename to scripts/VERSION.txt
diff --git a/scripts/mk_project.py b/scripts/mk_project.py
index da73e2daf..7b4d444ea 100644
--- a/scripts/mk_project.py
+++ b/scripts/mk_project.py
@@ -9,7 +9,7 @@ from mk_util import *
 
 def init_version():
     # Read version from VERSION.txt file
-    version_file_path = os.path.join(os.path.dirname(os.path.dirname(__file__)), 'VERSION.txt')
+    version_file_path = os.path.join(os.path.dirname(__file__), 'VERSION.txt')
     try:
         with open(version_file_path, 'r') as f:
             version_str = f.read().strip()
diff --git a/scripts/nightly.yaml b/scripts/nightly.yaml
index 63c259397..d051cb0ee 100644
--- a/scripts/nightly.yaml
+++ b/scripts/nightly.yaml
@@ -1,8 +1,8 @@
 variables:
   # Version components read from VERSION.txt (updated manually when VERSION.txt changes)
   Major: '4'
-  Minor: '16'
-  Patch: '0'
+  Minor: '15'
+  Patch: '4'
   ReleaseVersion: $(Major).$(Minor).$(Patch)
   AssemblyVersion: $(Major).$(Minor).$(Patch).$(Build.BuildId)
   NightlyVersion: $(AssemblyVersion)-$(Build.buildId)
diff --git a/scripts/release.yml b/scripts/release.yml
index 5973c46f5..b26539c35 100644
--- a/scripts/release.yml
+++ b/scripts/release.yml
@@ -6,7 +6,7 @@
 trigger: none
 
 variables:
-  ReleaseVersion: '4.16.0'  # TODO: Auto-read from VERSION.txt when Azure DevOps supports it better
+  ReleaseVersion: '4.15.4'  # TODO: Auto-read from VERSION.txt when Azure DevOps supports it better
 
 stages:
 
diff --git a/scripts/update_version.py b/scripts/update_version.py
index fcc3c5576..f33b20655 100755
--- a/scripts/update_version.py
+++ b/scripts/update_version.py
@@ -16,7 +16,7 @@ import sys
 def read_version():
     """Read version from VERSION.txt file."""
     script_dir = os.path.dirname(os.path.abspath(__file__))
-    version_file = os.path.join(os.path.dirname(script_dir), 'VERSION.txt')
+    version_file = os.path.join(script_dir, 'VERSION.txt')
     
     try:
         with open(version_file, 'r') as f:
diff --git a/src/api/python/setup.py b/src/api/python/setup.py
index bdc3cc38b..75b2298ac 100644
--- a/src/api/python/setup.py
+++ b/src/api/python/setup.py
@@ -120,6 +120,8 @@ def _z3_version():
             if os.path.exists(d):
                print(d, ": ", os.listdir(d))
         fns = [os.path.join(d, 'VERSION.txt') for d in dirs]
+        # Also try the scripts directory
+        fns.extend([os.path.join(d, 'scripts', 'VERSION.txt') for d in dirs])
         for fn in fns:
             print("loading version file", fn, "exists", os.path.exists(fn))
             if os.path.exists(fn):
@@ -254,7 +256,7 @@ def _copy_sources():
 
 #   shutil.copy(os.path.join(SRC_DIR_REPO, 'LICENSE.txt'), ROOT_DIR)
     shutil.copy(os.path.join(SRC_DIR_REPO, 'LICENSE.txt'), SRC_DIR_LOCAL)
-    shutil.copy(os.path.join(SRC_DIR, 'VERSION.txt'), SRC_DIR_LOCAL)
+    shutil.copy(os.path.join(SRC_DIR, 'scripts', 'VERSION.txt'), SRC_DIR_LOCAL)
     shutil.copy(os.path.join(SRC_DIR_REPO, 'z3.pc.cmake.in'), SRC_DIR_LOCAL)
     shutil.copy(os.path.join(SRC_DIR_REPO, 'CMakeLists.txt'), SRC_DIR_LOCAL)
     shutil.copytree(os.path.join(SRC_DIR_REPO, 'cmake'), os.path.join(SRC_DIR_LOCAL, 'cmake'))