diff --git a/changelogs/CHANGELOG-v2.20.rst b/changelogs/CHANGELOG-v2.20.rst
index 343e7adb90b..1344bde68ad 100644
--- a/changelogs/CHANGELOG-v2.20.rst
+++ b/changelogs/CHANGELOG-v2.20.rst
@@ -4,6 +4,28 @@ ansible-core 2.20 "Good Times Bad Times" Release Notes
 
 .. contents:: Topics
 
+v2.20.3rc1
+==========
+
+Release Summary
+---------------
+
+| Release Date: 2026-02-17
+| `Porting Guide <https://docs.ansible.com/ansible-core/2.20/porting_guides/porting_guide_core_2.20.html>`__
+
+Minor Changes
+-------------
+
+- ansible-test - Update URL used to download FreeBSD wheels for managed remotes.
+- ansible-test - Use the new API endpoint for the Ansible Core CI service.
+
+Bugfixes
+--------
+
+- Fix interpreter discovery on delegated ``async`` tasks (https://github.com/ansible/ansible/issues/86491)
+- Fix up the Action plugin ``_make_tmp_path`` error to only include the command run rather than the shell's dataclass repr from ``mkdtemp``.
+- local connection - Pass correct type to become plugins when checking password (https://github.com/ansible/ansible/issues/86458)
+
 v2.20.2
 =======
 
diff --git a/changelogs/changelog.yaml b/changelogs/changelog.yaml
index 405545a4121..6131872cc0c 100644
--- a/changelogs/changelog.yaml
+++ b/changelogs/changelog.yaml
@@ -494,3 +494,28 @@ releases:
     - module_defaults-action-plugin-templating.yml
     - winrm-kerberos.yml
     release_date: '2026-01-22'
+  2.20.3rc1:
+    changes:
+      bugfixes:
+      - Fix interpreter discovery on delegated ``async`` tasks (https://github.com/ansible/ansible/issues/86491)
+      - Fix up the Action plugin ``_make_tmp_path`` error to only include the command
+        run rather than the shell's dataclass repr from ``mkdtemp``.
+      - local connection - Pass correct type to become plugins when checking password
+        (https://github.com/ansible/ansible/issues/86458)
+      minor_changes:
+      - ansible-test - Update URL used to download FreeBSD wheels for managed remotes.
+      - ansible-test - Use the new API endpoint for the Ansible Core CI service.
+      release_summary: '| Release Date: 2026-02-17
+
+        | `Porting Guide <https://docs.ansible.com/ansible-core/2.20/porting_guides/porting_guide_core_2.20.html>`__
+
+        '
+    codename: Good Times Bad Times
+    fragments:
+    - 2.20.3rc1_summary.yaml
+    - 86473_su_become_local.yml
+    - 86491-fix-interpreter-delegated_async.yml
+    - ansible-test-api-endpoint.yml
+    - ansible-test-spare-tire.yml
+    - make-tmp-path-msg.yml
+    release_date: '2026-02-17'
diff --git a/changelogs/fragments/2.20.3rc1_summary.yaml b/changelogs/fragments/2.20.3rc1_summary.yaml
new file mode 100644
index 00000000000..3e8bae66914
--- /dev/null
+++ b/changelogs/fragments/2.20.3rc1_summary.yaml
@@ -0,0 +1,3 @@
+release_summary: |
+   | Release Date: 2026-02-17
+   | `Porting Guide <https://docs.ansible.com/ansible-core/2.20/porting_guides/porting_guide_core_2.20.html>`__
diff --git a/lib/ansible/release.py b/lib/ansible/release.py
index 72382908c83..75e2b224865 100644
--- a/lib/ansible/release.py
+++ b/lib/ansible/release.py
@@ -17,6 +17,6 @@
 
 from __future__ import annotations
 
-__version__ = '2.20.2.post0'
+__version__ = '2.20.3rc1'
 __author__ = 'Ansible, Inc.'
 __codename__ = "Good Times Bad Times"
diff --git a/pyproject.toml b/pyproject.toml
index 7fd2b3f0cf7..a313c37a47c 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,5 +1,5 @@
 [build-system]
-requires = ["setuptools >= 66.1.0, <= 80.10.2", "wheel == 0.45.1"]  # lower bound to support controller Python versions, upper bound for latest version tested at release
+requires = ["setuptools >= 66.1.0, <= 82.0.0", "wheel == 0.45.1"]  # lower bound to support controller Python versions, upper bound for latest version tested at release
 build-backend = "setuptools.build_meta"
 
 [project]