diff --git a/wp-admin/includes/update.php b/wp-admin/includes/update.php
index 4343c6c1ba..1debecdc53 100644
--- a/wp-admin/includes/update.php
+++ b/wp-admin/includes/update.php
@@ -8,11 +8,79 @@
 
 // The admin side of our 1.1 update system
 
+/**
+ * Selects the first update version from the update_core option
+ *
+ * @return object the response from the API
+ */
+function get_preferred_from_update_core() {
+	$updates = get_core_updates();
+	if ( !is_array( $updates ) )
+		return false;
+	if ( empty( $updates ) )
+		return (object)array('response' => 'latest');
+	return $updates[0];
+}
+
+/**
+ * Get available core updates
+ *
+ * @param array $options Set $options['dismissed'] to true to show dismissed upgrades too,
+ * 	set $options['available'] to false to skip not-dimissed updates.
+ * @return array Array of the update objects
+ */
+function get_core_updates( $options = array() ) {
+	$options = array_merge( array('available' => true, 'dismissed' => false ), $options );
+	$dismissed = get_option( 'dismissed_update_core' );
+	if ( !is_array( $dismissed ) ) $dismissed = array();
+	$from_api = get_option( 'update_core' );
+	if ( !is_array( $from_api ) ) return false;
+	$result = array();
+	foreach($from_api as $update) {
+		if ( array_key_exists( $update->current.'|'.$update->locale, $dismissed ) ) {
+			if ( $options['dismissed'] ) {
+				$update->dismissed = true;
+				$result[]= $update;
+			}
+		} else {
+			if ( $options['available'] ) {
+				$update->dismissed = false;
+				$result[]= $update;
+			}
+		}
+	}
+	return $result;
+}
+
+function dismiss_core_update( $update ) {
+	$dismissed = get_option( 'dismissed_update_core' );
+	$dismissed[ $update->current.'|'.$update->locale ] = true;
+	return update_option( 'dismissed_update_core', $dismissed );
+}
+
+function undismiss_core_update( $version, $locale ) {
+	$dismissed = get_option( 'dismissed_update_core' );
+	$key = $version.'|'.$locale;
+	if ( !isset( $dismissed[$key] ) ) return false;
+	unset( $dismissed[$key] );
+	return update_option( 'dismissed_update_core', $dismissed );
+}
+
+function find_core_update( $version, $locale ) {
+	$from_api = get_option( 'update_core' );
+	if ( !is_array( $from_api ) ) return false;
+	foreach($from_api as $update) {
+		if ( $update->current == $version && $update->locale == $locale )
+			return $update;
+	}
+	return false;
+}
+
 function core_update_footer( $msg = '' ) {
 	if ( !current_user_can('manage_options') )
 		return sprintf( '| '.__( 'Version %s' ), $GLOBALS['wp_version'] );
 
-	$cur = get_option( 'update_core' );
+	$cur = get_preferred_from_update_core();
 	if ( ! isset( $cur->current ) )
 		$cur->current = '';
 
@@ -39,7 +107,7 @@ function core_update_footer( $msg = '' ) {
 add_filter( 'update_footer', 'core_update_footer' );
 
 function update_nag() {
-	$cur = get_option( 'update_core' );
+	$cur = get_preferred_from_update_core();
 
 	if ( ! isset( $cur->response ) || $cur->response != 'upgrade' )
 		return false;
@@ -55,7 +123,7 @@ function update_nag() {
 
 // Called directly from dashboard
 function update_right_now_message() {
-	$cur = get_option( 'update_core' );
+	$cur = get_preferred_from_update_core();
 
 	$msg = sprintf( __('You are using <span class="b">WordPress %s</span>.'), $GLOBALS['wp_version'] );
 	if ( isset( $cur->response ) && $cur->response == 'upgrade' && current_user_can('manage_options') )
@@ -320,7 +388,7 @@ function wp_update_theme($theme, $feedback = '') {
 }
 
 
-function wp_update_core($feedback = '') {
+function wp_update_core($current, $feedback = '') {
 	global $wp_filesystem;
 
 	@set_time_limit( 300 );
@@ -329,7 +397,6 @@ function wp_update_core($feedback = '') {
 		add_filter('update_feedback', $feedback);
 
 	// Is an update available?
-	$current = get_option( 'update_core' );
 	if ( !isset( $current->response ) || $current->response == 'latest' )
 		return new WP_Error('up_to_date', __('WordPress is at the latest version.'));
 
diff --git a/wp-admin/menu.php b/wp-admin/menu.php
index 23e6982b5e..ddf69e0727 100644
--- a/wp-admin/menu.php
+++ b/wp-admin/menu.php
@@ -86,6 +86,7 @@ $menu[45] = array( __('Tools'), 'manage_options', 'import.php', '', '', 'menu-to
 	$submenu['import.php'][10] = array( __('Export'), 'import', 'export.php' );
 	if ( ! $is_opera )
 		$submenu['import.php'][20] = array( __('Turbo'), 'read', 'turbo.php' );
+	$submenu['import.php'][30] = array( __('Update'), 'read',  wp_nonce_url('update.php?action=upgrade-core', 'upgrade-core'));
 
 $menu[50] = array( __('Settings'), 'manage_options', 'options-general.php', '', 'menu-top-last', 'menu-settings', 'images/menu/settings.png' );
 	$submenu['options-general.php'][10] = array(__('General'), 'manage_options', 'options-general.php');
diff --git a/wp-admin/update.php b/wp-admin/update.php
index 5f5846a24c..4ecb837175 100644
--- a/wp-admin/update.php
+++ b/wp-admin/update.php
@@ -122,6 +122,64 @@ function do_theme_upgrade($theme) {
 	echo '</div>';
 }
 
+function list_core_update( $update ) {
+	$version_string = 'en_US' == $update->locale?
+			$update->current : sprintf("%s&ndash;<strong>%s</strong>", $update->current, $update->locale); 
+	if ( 'development' == $update->response ) {
+		$message = __('You are using a development version of WordPress.  You can upgrade to the latest nightly build automatically or download the nightly build and install it manually:');
+		$submit = __('Download nightly build');
+	} else {
+		$message = 	sprintf(__('You can upgrade to version %s automatically or download the package and install it manually:'), $version_string);
+		$submit = sprintf(__('Download %s'), $version_string);
+	}
+
+	echo '<p>';
+	echo $message;
+	echo '</p>';
+	echo '<form method="post" action="update.php?action=do-core-upgrade" name="upgrade" class="upgrade">';
+	wp_nonce_field('upgrade-core');
+	echo '<p>';
+	echo '<input id="upgrade" class="button" type="submit" value="' . __('Upgrade Automatically') . '" name="upgrade" />&nbsp;';
+	echo '<input name="version" value="'.$update->current.'" type="hidden"/>';
+	echo '<input name="locale" value="'.$update->locale.'" type="hidden"/>';
+	echo '<a href="' . $update->package . '" class="button">' . $submit . '</a>&nbsp;';
+	if ( 'en_US' != $update->locale )
+		if ( !isset( $update->dismissed ) || !$update->dismissed )
+			echo '<input id="dismiss" class="button" type="submit" value="' . attribute_escape(__('Hide this update')) . '" name="dismiss" />';
+		else
+			echo '<input id="undismiss" class="button" type="submit" value="' . attribute_escape(__('Bring back this update')) . '" name="undismiss" />';
+	echo '</p>';
+	echo '</form>';
+	
+}
+
+function dismissed_updates() {
+	$dismissed = get_core_updates( array( 'dismissed' => true, 'available' => false ) );
+	if ( $dismissed ) {
+		
+		$show_text = js_escape(__('Show hidden updates'));
+		$hide_text = js_escape(__('Hide hidden updates'));
+	?>
+	<script type="text/javascript">
+		
+		jQuery(function($) {
+			$('dismissed-updates').show();
+			$('#show-dismissed').toggle(function(){$(this).text('<?php echo $hide_text; ?>');}, function() {$(this).text('<?php echo $show_text; ?>')});
+			$('#show-dismissed').click(function() { $('#dismissed-updates').toggle('slow');});
+		});
+	</script>
+	<?php
+		echo '<p class="hide-if-no-js"><a id="show-dismissed" href="#">'.__('Show hidden updates').'</a></p>';
+		echo '<ul id="dismissed-updates" class="core-updates dismissed">';
+		foreach($dismissed as $update) {
+			echo '<li>';
+			list_core_update( $update );
+			echo '</li>';
+		}
+		echo '</ul>';
+	}	
+}
+
 /**
  * Display upgrade WordPress for downloading latest or upgrading automatically form.
  *
@@ -130,43 +188,42 @@ function do_theme_upgrade($theme) {
  * @return null
  */
 function core_upgrade_preamble() {
-	$update = get_option('update_core');
-
+	$updates = get_core_updates();
+	
 	echo '<div class="wrap">';
 	echo '<h2>' . __('Upgrade WordPress') . '</h2>';
 
-	if ( !isset($update->response) || 'latest' == $update->response ) {
-		_e('You have the latest version of WordPress. You do not need to upgrade.');
+	if ( !isset($updates[0]->response) || 'latest' == $updates[0]->response ) {
+		echo '<h3>';
+		_e('You have the latest version of WordPress. You do not need to upgrade');
+		echo '</h3>';
+		dismissed_updates();
 		echo '</div>';
 		return;
 	}
 
-	echo '<p>';
-	_e('A new version of WordPress is available for upgrade.  Before upgrading, please <a href="http://codex.wordpress.org/WordPress_Backups">backup your database and files</a>.');  
-	echo '</p>';
-
-	if ( 'development' == $update->response ) {
-		$message = __('You are using a development version of WordPress.  You can upgrade to the latest nightly build automatically or download the nightly build and install it manually. Which would you like to do?');
-		$submit = __('Download nightly build');
-	} else {
-		$message = 	sprintf(__('You can upgrade to version %s automatically or download the package and install it manually. Which would you like to do?'), $update->current);
-		$submit = sprintf(__('Download %s'), $update->current);
+	echo '<div class="updated fade"><p>';
+	_e('<strong>Important:</strong> before upgrading, please <a href="http://codex.wordpress.org/WordPress_Backups">backup your database and files</a>.');  
+	echo '</p></div>';
+	
+	echo '<h3 class="response">';
+	_e( 'There is a new version of WordPress available for upgrade' );
+	echo '</h3>';
+	echo '<ul class="core-updates">';
+	$alternate = true;
+	foreach( $updates as $update ) {
+		$class = $alternate? ' class="alternate"' : '';
+		$alternate = !$alternate;
+		echo "<li $class>";
+		list_core_update( $update );
+		echo '</li>';
 	}
-
-	echo '<p>';
-	echo $message;
-	echo '</p>';
-	echo '<form id="post" method="post" action="update.php?action=do-core-upgrade" name="upgrade">';
-	wp_nonce_field('upgrade-core');
-	echo '<p>';
-	echo '<input id="upgrade" class="button" type="submit" value="' . __('Upgrade Automatically') . '" name="upgrade" />';
-	echo '<a href="' . $update->package . '" class="button">' . $submit . '</a>';
-	echo '</p>';
-	echo '</form>';
-
+	echo '</ul>';
+	dismissed_updates();
 	echo '</div>';
 }
 
+
 /**
  * Upgrade WordPress core display.
  *
@@ -176,10 +233,17 @@ function core_upgrade_preamble() {
  */
 function do_core_upgrade() {
 	global $wp_filesystem;
-
+	
 	$url = wp_nonce_url('update.php?action=do-core-upgrade', 'upgrade-core');
 	if ( false === ($credentials = request_filesystem_credentials($url)) )
 		return;
+		
+	$version = isset( $_POST['version'] )? $_POST['version'] : false;
+	$locale = isset( $_POST['locale'] )? $_POST['locale'] : 'en_US';
+	$update = find_core_update( $version, $locale );
+	if ( !$update )
+		return;
+		
 
 	if ( ! WP_Filesystem($credentials) ) {
 		request_filesystem_credentials($url, '', true); //Failed to connect, Error and request again
@@ -195,7 +259,7 @@ function do_core_upgrade() {
 		return;
 	}
 
-	$result = wp_update_core('show_message');
+	$result = wp_update_core($update, 'show_message');
 
 	if ( is_wp_error($result) ) {
 		show_message($result);
@@ -207,6 +271,26 @@ function do_core_upgrade() {
 	echo '</div>';
 }
 
+function do_dismiss_core_update() {
+	$version = isset( $_POST['version'] )? $_POST['version'] : false;
+	$locale = isset( $_POST['locale'] )? $_POST['locale'] : 'en_US';
+	$update = find_core_update( $version, $locale );
+	if ( !$update )
+		return;
+	dismiss_core_update( $update );
+	wp_redirect( wp_nonce_url('update.php?action=upgrade-core', 'upgrade-core') );
+}
+
+function do_undismiss_core_update() {
+	$version = isset( $_POST['version'] )? $_POST['version'] : false;
+	$locale = isset( $_POST['locale'] )? $_POST['locale'] : 'en_US';
+	$update = find_core_update( $version, $locale );
+	if ( !$update )
+		return;
+	undismiss_core_update( $version, $locale );
+	wp_redirect( wp_nonce_url('update.php?action=upgrade-core', 'upgrade-core') );
+}
+
 if ( isset($_GET['action']) ) {
 	$plugin = isset($_GET['plugin']) ? trim($_GET['plugin']) : '';
 	$theme = isset($_REQUEST['theme']) ? urldecode($_REQUEST['theme']) : '';
@@ -248,8 +332,15 @@ if ( isset($_GET['action']) ) {
 		check_admin_referer('upgrade-core');
 		$title = __('Upgrade WordPress');
 		$parent_file = 'index.php';
+		// do the (un)dismiss actions before headers,
+		// so that they can redirect
+		if ( isset( $_POST['dismiss'] ) )
+			do_dismiss_core_update();
+		elseif ( isset( $_POST['undismiss'] ) )
+			do_undismiss_core_update();
 		require_once('admin-header.php');
-		do_core_upgrade();
+		if ( isset( $_POST['upgrade'] ) )
+			do_core_upgrade();
 		include('admin-footer.php');
 	} elseif ( 'upgrade-theme' == $action ) {	
 		check_admin_referer('upgrade-theme_' . $theme);
diff --git a/wp-admin/wp-admin.css b/wp-admin/wp-admin.css
index 3594eaf622..03c7925fb6 100644
--- a/wp-admin/wp-admin.css
+++ b/wp-admin/wp-admin.css
@@ -2914,3 +2914,12 @@ abbr.required {
 .setting-description {
 	font-style: italic;
 }
+ul#dismissed-updates {
+	display: none;
+}
+ul.core-updates li {
+	padding: 12px;
+}
+form.upgrade {
+	margin-top: 8px;
+}
\ No newline at end of file
diff --git a/wp-includes/update.php b/wp-includes/update.php
index 24521c6e03..bf46c61624 100644
--- a/wp-includes/update.php
+++ b/wp-includes/update.php
@@ -23,19 +23,17 @@ function wp_version_check() {
 	if ( defined('WP_INSTALLING') )
 		return;
 
-	global $wp_version, $wpdb;
+	global $wp_version, $wpdb, $wp_local_package;
 	$php_version = phpversion();
 
 	$current = get_option( 'update_core' );
 	$locale = get_locale();
-
 	if (
 		isset( $current->last_checked ) &&
 		43200 > ( time() - $current->last_checked ) &&
 		$current->version_checked == $wp_version
 	)
 		return false;
-
 	$new_option = '';
 	$new_option->last_checked = time(); // this gets set whether we get a response or not, so if something is down or misconfigured it won't delay the page load for more than 3 seconds, twice a day
 	$new_option->version_checked = $wp_version;
@@ -44,8 +42,8 @@ function wp_version_check() {
 		$mysql_version = preg_replace('/[^0-9.].*/', '', $wpdb->db_version($wpdb->users));
 	else
 		$mysql_version = 'N/A';
-
-	$url = "http://api.wordpress.org/core/version-check/1.2/?version=$wp_version&php=$php_version&locale=$locale&mysql=$mysql_version";
+	$local_package = isset( $wp_local_package )? $wp_local_package : '';
+	$url = "http://api.wordpress.org/core/version-check/1.3/?version=$wp_version&php=$php_version&locale=$locale&mysql=$mysql_version&local_package=$local_package";
 
 	$options = array('timeout' => 3);
 	$options['headers'] = array(
@@ -63,19 +61,23 @@ function wp_version_check() {
 
 	$body = trim( $response['body'] );
 	$body = str_replace(array("\r\n", "\r"), "\n", $body);
-	$returns = explode("\n", $body);
+	$new_options = array();
+	foreach( explode( "\n\n", $body ) as $entry) {
+		$returns = explode("\n", $entry);
+		$new_option = new stdClass();
+		$new_option->response = attribute_escape( $returns[0] );
+		if ( isset( $returns[1] ) )
+			$new_option->url = clean_url( $returns[1] );
+		if ( isset( $returns[2] ) )
+			$new_option->package = clean_url( $returns[2] );
+		if ( isset( $returns[3] ) )
+			$new_option->current = attribute_escape( $returns[3] );
+		if ( isset( $returns[4] ) )
+			$new_option->locale = attribute_escape( $returns[4] );
+		$new_options[] = $new_option;
+	}
 
-	$new_option->response = attribute_escape( $returns[0] );
-	if ( isset( $returns[1] ) )
-		$new_option->url = clean_url( $returns[1] );
-	if ( isset( $returns[2] ) )
-		$new_option->package = clean_url( $returns[2] );
-	if ( isset( $returns[3] ) )
-		$new_option->current = attribute_escape( $returns[3] );
-	if ( isset( $returns[4] ) )
-		$new_option->locale = attribute_escape( $returns[4] );
-
-	update_option( 'update_core', $new_option );
+	update_option( 'update_core', $new_options );
 }
 add_action( 'init', 'wp_version_check' );