diff --git a/neutron_lib/placement/client.py b/neutron_lib/placement/client.py
index e50a3bbfe..790c312a3 100644
--- a/neutron_lib/placement/client.py
+++ b/neutron_lib/placement/client.py
@@ -31,7 +31,8 @@ LOG = logging.getLogger(__name__)
 API_VERSION_REQUEST_HEADER = 'OpenStack-API-Version'
 PLACEMENT_API_WITH_MEMBER_OF = 'placement 1.3'
 PLACEMENT_API_WITH_NESTED_RESOURCES = 'placement 1.14'
-PLACEMENT_API_LATEST_SUPPORTED = PLACEMENT_API_WITH_NESTED_RESOURCES
+PLACEMENT_API_RETURN_PROVIDER_BODY = 'placement 1.20'
+PLACEMENT_API_LATEST_SUPPORTED = PLACEMENT_API_RETURN_PROVIDER_BODY
 
 
 def _check_placement_api_available(f):
diff --git a/releasenotes/notes/placement-client-bump-latest-supported-version-to-1-20-fe96751dab42399b.yaml b/releasenotes/notes/placement-client-bump-latest-supported-version-to-1-20-fe96751dab42399b.yaml
new file mode 100644
index 000000000..da57cd0a4
--- /dev/null
+++ b/releasenotes/notes/placement-client-bump-latest-supported-version-to-1-20-fe96751dab42399b.yaml
@@ -0,0 +1,6 @@
+---
+other:
+  - |
+    Bump ``PlacementAPIClient's`` max supported microversion to ``1.20``,
+    as from that microversion placement API returns json body for
+    POST /resource_providers.