diff --git a/CMakeLists.txt b/CMakeLists.txt
index 183a91a..2472d0c 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -1,5 +1,30 @@
 cmake_minimum_required (VERSION 3.12)
 
+function(get_versions versionstring VERSION_MAJOR VERSION_MINOR VERSION_PATCH)
+    string(REGEX REPLACE "^([vV])([0-9]*)([.][0-9]*[.][0-9]*-?.*)$" "\\2" numbers ${versionstring} )
+    set(VERSION_MAJOR ${numbers} PARENT_SCOPE)
+    string(REGEX REPLACE "^([vV][0-9]*[.])([0-9]*)([.][0-9]*-?.*)$" "\\2" numbers ${versionstring} )
+    set(VERSION_MINOR ${numbers} PARENT_SCOPE)
+    string(REGEX REPLACE "^([vV][0-9]*[.][0-9]*[.])([0-9]*)(-?.*)$" "\\2" numbers ${versionstring} )
+    set(VERSION_PATCH ${numbers} PARENT_SCOPE)
+endfunction()
+
+if(NOT EXISTS "${CMAKE_SOURCE_DIR}/version.txt")
+  message(FATAL_ERROR "version.txt file does not exist")
+endif()
+
+file(STRINGS "version.txt" VERSION_STRING)
+
+if(NOT ${VERSION_STRING} MATCHES "^[vV][0-9]*[.][0-9]*[.][0-9]*$")
+  message(FATAL_ERROR "Version string taken from version.txt doesn't match required format v[VERSION_MAJOR].[VERSION_MINOR].[VERSION_PATCH]")
+endif()
+
+get_versions(${VERSION_STRING} VERSION_MAJOR VERSION_MINOR VERSION_PATCH)
+if(VERSION_MAJOR STREQUAL ${VERSION_STRING})
+  message(FATAL_ERROR "Version string parsing error")
+endif()
+message("XEVE VERSION=${VERSION_MAJOR}.${VERSION_MINOR}.${VERSION_PATCH}")
+
 # Check input arguments.
 if(NOT SET_PROF)
   set(SET_PROF "MAIN")
@@ -28,7 +53,7 @@ cmake_policy(SET CMP0048 NEW)
 set(CMAKE_C_STANDARD 99)
 
 # Maps to a solution file (XEVE.sln).
-project (XEVE VERSION 1.0.0)
+project (XEVE VERSION ${VERSION_MAJOR}.${VERSION_MINOR}.${VERSION_PATCH})
 set_property(GLOBAL PROPERTY USE_FOLDERS ON)
 
 # Set compiler flags and options.
diff --git a/src_base/CMakeLists.txt b/src_base/CMakeLists.txt
index 53e1301..34e7378 100644
--- a/src_base/CMakeLists.txt
+++ b/src_base/CMakeLists.txt
@@ -1,6 +1,6 @@
 set( LIB_NAME_BASE xeveb )
 
-set( LIB_SOVERSION 1)
+set( LIB_SOVERSION ${VERSION_MAJOR})
 
 file (GLOB XEVE_INC "../inc/*.h")
 file (GLOB LIB_API_SRC "xeve.c")
diff --git a/src_main/CMakeLists.txt b/src_main/CMakeLists.txt
index f828fc6..0f7235f 100644
--- a/src_main/CMakeLists.txt
+++ b/src_main/CMakeLists.txt
@@ -3,7 +3,7 @@
 # For shared libraries VERSION and SOVERSION can be used to specify the build version and API version respectively
 # see https://cmake.org/cmake/help/latest/prop_tgt/SOVERSION.html
 #
-set( LIB_SOVERSION 1)
+set( LIB_SOVERSION ${VERSION_MAJOR})
 
 file (GLOB ETM_INC "../inc/*.h")
 file (GLOB LIB_BASE_SRC "../src_base/xeve_*.c")
diff --git a/version.txt b/version.txt
new file mode 100644
index 0000000..0ec25f7
--- /dev/null
+++ b/version.txt
@@ -0,0 +1 @@
+v1.0.0