diff --git a/doc/changes/unreleased.md b/doc/changes/unreleased.md
index 6f367b399..1fad4d6ff 100644
--- a/doc/changes/unreleased.md
+++ b/doc/changes/unreleased.md
@@ -38,6 +38,7 @@ take care and will need to make manual changes to ensure it still works with
 
 * #649: Restricted noxconfig usage throughout exasol.toolbox to only exasol.toolbox.nox.*
 * #647: Added summary to changelog template
+* #657: Updated `release:prepare` to modify cookiecutter template exasol-toolbox version range
 
 ## Refactoring
 
diff --git a/exasol/toolbox/templates/pre-commit-config.yaml b/exasol/toolbox/templates/pre-commit-config.yaml
deleted file mode 100644
index b4eaf6b80..000000000
--- a/exasol/toolbox/templates/pre-commit-config.yaml
+++ /dev/null
@@ -1,36 +0,0 @@
-default_stages: [ commit ]
-repos:
-
-  - repo: local
-    hooks:
-      - id: code-format
-        name: code-format
-        types: [ python ]
-        pass_filenames: false
-        language: system
-        entry: poetry run -- nox -s format:fix
-
-  - repo: local
-    hooks:
-      - id: type-check
-        name: type-check
-        types: [ python ]
-        pass_filenames: false
-        language: system
-        entry: poetry run -- nox -s lint:typing
-
-  - repo: local
-    hooks:
-      - id: lint
-        name: lint
-        types: [ python ]
-        pass_filenames: false
-        language: system
-        entry: poetry run -- nox -s lint:code
-
-  - repo: https://github.com/pre-commit/pre-commit-hooks
-    rev: v4.4.0
-    hooks:
-      - id: check-yaml
-      - id: end-of-file-fixer
-      - id: trailing-whitespace
diff --git a/exasol/toolbox/util/release/cookiecutter.py b/exasol/toolbox/util/release/cookiecutter.py
new file mode 100644
index 000000000..82b2a89bb
--- /dev/null
+++ b/exasol/toolbox/util/release/cookiecutter.py
@@ -0,0 +1,17 @@
+from json import (
+    dumps,
+    loads,
+)
+from pathlib import Path
+
+from exasol.toolbox.util.version import Version
+
+
+def update_cookiecutter_default(cookiecutter_json: Path, version: Version) -> None:
+    contents = cookiecutter_json.read_text()
+    contents_as_dict = loads(contents)
+
+    contents_as_dict["exasol_toolbox_version_range"] = f">={version},<{version.major+1}"
+
+    updated_contents = dumps(contents_as_dict, indent=2)
+    cookiecutter_json.write_text(updated_contents)
diff --git a/noxconfig.py b/noxconfig.py
index 51ac4f73d..8f20383e3 100644
--- a/noxconfig.py
+++ b/noxconfig.py
@@ -9,44 +9,51 @@
 from exasol.toolbox.config import BaseConfig
 from exasol.toolbox.nox.plugin import hookimpl
 from exasol.toolbox.tools.replace_version import update_github_yml
+from exasol.toolbox.util.release.cookiecutter import update_cookiecutter_default
 from exasol.toolbox.util.version import Version
 
 
 class UpdateTemplates:
-    TEMPLATE_PATH: Path = Path(__file__).parent / "exasol" / "toolbox" / "templates"
     PARENT_PATH: Path = Path(__file__).parent
 
     @property
-    def template_workflows(self) -> list[Path]:
-        gh_workflows = self.TEMPLATE_PATH / "github" / "workflows"
+    def github_template_workflows(self) -> list[Path]:
+        gh_workflows = (
+            self.PARENT_PATH
+            / "exasol"
+            / "toolbox"
+            / "templates"
+            / "github"
+            / "workflows"
+        )
         return [f for f in gh_workflows.iterdir() if f.is_file()]
 
     @property
-    def actions(self) -> list[Path]:
+    def github_actions(self) -> list[Path]:
         gh_actions = self.PARENT_PATH / ".github" / "actions"
         return [f for f in gh_actions.rglob("*") if f.is_file()]
 
+    @property
+    def cookiecutter_json(self) -> Path:
+        return self.PARENT_PATH / "project-template" / "cookiecutter.json"
+
     @hookimpl
     def prepare_release_update_version(self, session, config, version: Version) -> None:
-        for workflow in self.template_workflows:
+        for workflow in self.github_template_workflows:
             update_github_yml(workflow, version)
 
-        for action in self.actions:
+        for action in self.github_actions:
             update_github_yml(action, version)
 
+        update_cookiecutter_default(self.cookiecutter_json, version)
+
     @hookimpl
-    def prepare_release_add_files(self, session, config):
-        return self.template_workflows + self.actions
-
-
-# BaseConfig
-#   - Use
-#       Project_Config = BaseConfig()
-#   - modify
-#       Project_Config = BaseConfig(python_versions=["3.12"])
-#   - expand (Do not overwrite the attributes of BaseConfig)
-#       class ProjectConfig(BaseConfig):
-#           extra_data: list[str] = ["data"]
+    def prepare_release_add_files(self, session, config) -> list[Path]:
+        return (
+            self.github_template_workflows
+            + self.github_actions
+            + [self.cookiecutter_json]
+        )
 
 
 ROOT_PATH = Path(__file__).parent
diff --git a/project-template/cookiecutter.json b/project-template/cookiecutter.json
index 81cedc696..3aa430337 100644
--- a/project-template/cookiecutter.json
+++ b/project-template/cookiecutter.json
@@ -9,8 +9,11 @@
   "author_email": "opensource@exasol.com",
   "project_short_tag": "",
   "python_version_min": "3.10",
+  "exasol_toolbox_version_range": ">=4.0.1,<5",
   "license_year": "{% now 'utc', '%Y' %}",
   "__repo_name_slug": "{{cookiecutter.package_name}}",
   "__package_name_slug": "{{cookiecutter.package_name}}",
-  "_extensions": ["cookiecutter.extensions.TimeExtension"]
+  "_extensions": [
+    "cookiecutter.extensions.TimeExtension"
+  ]
 }
diff --git a/project-template/{{cookiecutter.repo_name}}/pyproject.toml b/project-template/{{cookiecutter.repo_name}}/pyproject.toml
index 027477215..33dcc0710 100644
--- a/project-template/{{cookiecutter.repo_name}}/pyproject.toml
+++ b/project-template/{{cookiecutter.repo_name}}/pyproject.toml
@@ -18,7 +18,7 @@ dependencies = []
 
 [dependency-groups]
 dev = [
-    "exasol-toolbox>=4.0.1,<5",
+    "exasol-toolbox{{cookiecutter.exasol_toolbox_version_range}}",
 ]
 
 [tool.poetry]
diff --git a/test/unit/util/release/cookiecutter_test.py b/test/unit/util/release/cookiecutter_test.py
new file mode 100644
index 000000000..e363d20a6
--- /dev/null
+++ b/test/unit/util/release/cookiecutter_test.py
@@ -0,0 +1,53 @@
+from inspect import cleandoc
+from json import loads
+from pathlib import Path
+
+import pytest
+
+from exasol.toolbox.util.release.cookiecutter import update_cookiecutter_default
+from exasol.toolbox.util.version import Version
+
+
+@pytest.fixture
+def cookiecutter_json(tmp_path: Path) -> Path:
+    cookiecutter_json = tmp_path / "cookiecutter.json"
+    contents = """
+    {
+      "project_name": "Yet Another Project",
+      "repo_name": "{{cookiecutter.project_name | lower | replace(' ', '-')}}",
+      "package_name": "{{cookiecutter.repo_name | replace('-', '_')}}",
+      "pypi_package_name": "exasol-{{cookiecutter.repo_name}}",
+      "import_package": "exasol.{{cookiecutter.package_name}}",
+      "description": "",
+      "author_full_name": "Exasol AG",
+      "author_email": "opensource@exasol.com",
+      "project_short_tag": "",
+      "python_version_min": "3.10",
+      "exasol_toolbox_version_range": ">=4.0.1,<5",
+      "license_year": "{% now 'utc', '%Y' %}",
+      "__repo_name_slug": "{{cookiecutter.package_name}}",
+      "__package_name_slug": "{{cookiecutter.package_name}}",
+      "_extensions": [
+        "cookiecutter.extensions.TimeExtension"
+      ]
+    }
+    """
+    cookiecutter_json.write_text(cleandoc(contents))
+    return cookiecutter_json
+
+
+@pytest.mark.parametrize(
+    "version,expected",
+    [
+        pytest.param(Version(major=5, minor=0, patch=7), ">=5.0.7,<6"),
+        pytest.param(Version(major=6, minor=2, patch=7), ">=6.2.7,<7"),
+    ],
+)
+def test_update_cookiecutter_default(
+    cookiecutter_json, version: Version, expected: str
+):
+    update_cookiecutter_default(cookiecutter_json=cookiecutter_json, version=version)
+
+    updated_json = cookiecutter_json.read_text()
+    updated_dict = loads(updated_json)
+    assert updated_dict["exasol_toolbox_version_range"] == expected