diff --git a/recipes-extended/cloud-init/cloud-init/0001-setup.py-check-for-install-anywhere-in-args.patch b/recipes-extended/cloud-init/cloud-init/0001-setup.py-check-for-install-anywhere-in-args.patch
deleted file mode 100644
index e5b214fe..00000000
--- a/recipes-extended/cloud-init/cloud-init/0001-setup.py-check-for-install-anywhere-in-args.patch
+++ /dev/null
@@ -1,33 +0,0 @@
-From 5c96379a4727c07fb5222208525013ec8b878184 Mon Sep 17 00:00:00 2001
-From: Bruce Ashfield <bruce.ashfield@gmail.com>
-Date: Wed, 4 Nov 2020 21:15:50 -0500
-Subject: [PATCH] setup.py: check for 'install' anywhere in args
-
-The python3distutils bbclass calls setup.py in a different way then
-cloud-init expects .. the 'install' is not argument 1, but is in fact
-after a 'build' and some other options.
-
-So rather than checking for install to be argv[1], we check for it
-anywhere in the arguments are trigger the template replacement to
-happen.
-
-Upstream-Status: Inappropriate [embedded specific]
-
-Signed-off-by: Bruce Ashfield <bruce.ashfield@gmail.com>
----
- setup.py | 2 +-
- 1 file changed, 1 insertion(+), 1 deletion(-)
-
-Index: git/setup.py
-===================================================================
---- git.orig/setup.py
-+++ git/setup.py
-@@ -60,7 +60,7 @@
-     that files are different outside of the debian directory."""
- 
-     # newer versions just use install.
--    if "install" not in sys.argv:
-+    if not ('install' in sys.argv or sys.argv[1].startswith('bdist*')):
-         return template
- 
-     tmpl_ext = ".tmpl"
diff --git a/recipes-extended/cloud-init/cloud-init_git.bb b/recipes-extended/cloud-init/cloud-init_git.bb
index f6d175e5..68337c9b 100644
--- a/recipes-extended/cloud-init/cloud-init_git.bb
+++ b/recipes-extended/cloud-init/cloud-init_git.bb
@@ -7,13 +7,12 @@ LIC_FILES_CHKSUM = "file://LICENSE;md5=c6dd79b6ec2130a3364f6fa9d6380408 \
     file://LICENSE-Apache2.0;md5=3b83ef96387f14655fc854ddc3c6bd57 \
 "
 
-SRCREV = "ea53a592be3df61059bd80fc0e32dff94a037906"
-SRC_URI = "git://github.com/canonical/cloud-init;branch=25.1.x;protocol=https \
-    file://cloud-init-source-local-lsb-functions.patch \
-    file://0001-setup.py-check-for-install-anywhere-in-args.patch \
+SRCREV = "b04c475f3147fd849bac6b3d41e1302b222c8406"
+SRC_URI = "git://github.com/canonical/cloud-init;branch=main;protocol=https \
+           file://cloud-init-source-local-lsb-functions.patch \
 "
 
-PV = "v25.1.4+git"
+PV = "v25.2.0+git"
 
 DISTUTILS_INSTALL_ARGS:append = " ${@bb.utils.contains('DISTRO_FEATURES', 'sysvinit', '--init-system=sysvinit_deb', '', d)}"
 DISTUTILS_INSTALL_ARGS:append = " ${@bb.utils.contains('DISTRO_FEATURES', 'systemd', '--init-system=systemd', '', d)}"
@@ -29,9 +28,10 @@ do_install:append() {
 }
 
 inherit pkgconfig
-inherit setuptools3_legacy
 inherit update-rc.d
 inherit systemd
+inherit python_setuptools_build_meta
+inherit meson
 
 # setup.py calls "pkg-config systemd --variable=systemdsystemunitdir" and needs to find our dev manager
 DEPENDS += "${@bb.utils.contains('DISTRO_FEATURES', 'systemd', 'systemd', '', d)}"