diff --git a/diskimage_builder/lib/disk-image-create b/diskimage_builder/lib/disk-image-create
index 1de310cb..1a9b8392 100644
--- a/diskimage_builder/lib/disk-image-create
+++ b/diskimage_builder/lib/disk-image-create
@@ -100,10 +100,6 @@ function show_options () {
     echo
     echo "NOTE: At least one distribution root element must be specified."
     echo
-    echo "NOTE: If using the VHD output format you need to have a patched version of vhd-util installed for the image"
-    echo "      to be bootable. The patch is available here: https://github.com/emonty/vhd-util/blob/master/debian/patches/citrix"
-    echo "      and a PPA with the patched tool is available here: https://launchpad.net/~openstack-ci-core/+archive/ubuntu/vhd-util"
-    echo
     echo "Examples:"
     if [ "$IS_RAMDISK" == "0" ]; then
         echo "    ${SCRIPTNAME} -a amd64 -o ubuntu-amd64 vm ubuntu"
@@ -269,8 +265,8 @@ for X in ${!IMAGE_TYPES[@]}; do
             IMAGE_TYPES+=('tar')
             ;;
         vhd)
-            if ! type vhd-util > /dev/null 2>&1; then
-                echo "vhd output format specified but no vhd-util executable found."
+            if ! type qemu-img > /dev/null 2>&1; then
+                echo "vhd output format specified but no qemu-img executable found."
                 exit 1
             fi
             ;;
diff --git a/diskimage_builder/lib/img-functions b/diskimage_builder/lib/img-functions
index fa75d7c9..5f38926d 100644
--- a/diskimage_builder/lib/img-functions
+++ b/diskimage_builder/lib/img-functions
@@ -147,12 +147,7 @@ function compress_and_save_image () {
         $DIB_GZIP_BIN -9 < $IMAGE_NAME.tar > $1-new
         rm $IMAGE_NAME.tar
     elif [ "$IMAGE_TYPE" == "vhd" ]; then
-        cp $TMP_IMAGE_PATH $1-intermediate
-        vhd-util convert -s 0 -t 1 -i $1-intermediate -o $1-intermediate
-        vhd-util convert -s 1 -t 2 -i $1-intermediate -o $1-new
-        # The previous command creates a .bak file
-        rm $1-intermediate.bak
-        OUT_IMAGE_PATH=$1-new
+        qemu-img convert $TMP_IMAGE_PATH -O vpc -o subformat=dynamic $1-new
     else
         echo "Converting image using qemu-img convert"
         qemu-img convert ${COMPRESS_IMAGE:+-c} -f raw -O $IMAGE_TYPE $EXTRA_OPTIONS $TMP_IMAGE_PATH $1-new
diff --git a/releasenotes/notes/qemu-img-for-vhd-90141590b5dbf77c.yaml b/releasenotes/notes/qemu-img-for-vhd-90141590b5dbf77c.yaml
new file mode 100644
index 00000000..65f869a5
--- /dev/null
+++ b/releasenotes/notes/qemu-img-for-vhd-90141590b5dbf77c.yaml
@@ -0,0 +1,6 @@
+---
+upgrade:
+  - |
+    Generation of VHD (VPC/Microsoft Virtual PC/Rackspace) images is
+    now done via qemu-img, rather than the externally patched
+    ``vhdutil`` package which is no longer maintained.