diff --git a/toolchain/gcc/Config.in b/toolchain/gcc/Config.in
index 7d7f34210a..6a013a8687 100644
--- a/toolchain/gcc/Config.in
+++ b/toolchain/gcc/Config.in
@@ -2,10 +2,16 @@
 
 choice
 	prompt "GCC compiler Version" if TOOLCHAINOPTS
-	default GCC_USE_VERSION_8
+	default GCC_USE_VERSION_7_1_ARC if arc
+	default GCC_USE_VERSION_7
 	help
 	  Select the version of gcc you wish to use.
 
+	config GCC_USE_VERSION_7_1_ARC
+		select GCC_VERSION_7_1_ARC
+		bool "gcc 7.1.x with support of ARC cores"
+		depends on arc
+
 	config GCC_USE_VERSION_5
 		bool "gcc 5.x"
 		depends on !arc
diff --git a/toolchain/gcc/Config.version b/toolchain/gcc/Config.version
index 687857bd1f..daa4fde698 100644
--- a/toolchain/gcc/Config.version
+++ b/toolchain/gcc/Config.version
@@ -1,3 +1,7 @@
+config GCC_VERSION_7_1_ARC
+	default y if (!TOOLCHAINOPTS && arc)
+	bool
+
 config GCC_VERSION_5
 	default y if GCC_USE_VERSION_5
 	bool
@@ -13,6 +17,7 @@ config GCC_VERSION_9
 config GCC_VERSION
 	string
 	default "5.5.0"		if GCC_VERSION_5
+	default "arc-2017.09-release"   if GCC_VERSION_7_1_ARC
 	default "7.4.0"		if GCC_VERSION_7
 	default "9.2.0"		if GCC_VERSION_9
 	default "8.3.0"