diff --git a/pkg/apis/core/v1beta1/openapi_generated.go b/pkg/apis/core/v1beta1/openapi_generated.go
index 1e166124d9..47e937cb5c 100644
--- a/pkg/apis/core/v1beta1/openapi_generated.go
+++ b/pkg/apis/core/v1beta1/openapi_generated.go
@@ -18470,7 +18470,7 @@ func schema_pkg_apis_core_v1beta1_ObjectTransfer(ref common.ReferenceCallback) c
 	return common.OpenAPIDefinition{
 		Schema: spec.Schema{
 			SchemaProps: spec.SchemaProps{
-				Description: "ObjectTransfer is the cluster scoped object transfer resource",
+				Description: "Deprecated for removal in v1.\n\nObjectTransfer is the cluster scoped object transfer resource",
 				Type:        []string{"object"},
 				Properties: map[string]spec.Schema{
 					"kind": {
diff --git a/pkg/apiserver/webhooks/transfer-validate.go b/pkg/apiserver/webhooks/transfer-validate.go
index 7d13b2aaf6..af6e28394e 100644
--- a/pkg/apiserver/webhooks/transfer-validate.go
+++ b/pkg/apiserver/webhooks/transfer-validate.go
@@ -40,6 +40,8 @@ type objectTransferValidatingWebhook struct {
 	cdiClient cdiclient.Interface
 }
 
+// ObjectTransfer is now deprecated and will be removed in v1.
+// github issue: https://github.com/kubevirt/containerized-data-importer/issues/3417
 func (wh *objectTransferValidatingWebhook) Admit(ar admissionv1.AdmissionReview) *admissionv1.AdmissionResponse {
 	klog.V(3).Infof("Got AdmissionReview %+v", ar)
 
@@ -107,5 +109,8 @@ func (wh *objectTransferValidatingWebhook) Admit(ar admissionv1.AdmissionReview)
 		return toAdmissionResponseError(err)
 	}
 
-	return allowedAdmissionResponse()
+	return &admissionv1.AdmissionResponse{
+		Allowed:  true,
+		Warnings: []string{"ObjectTransfer feature is deprecated, and will be deleted soon"},
+	}
 }
diff --git a/pkg/apiserver/webhooks/transfer-validate_test.go b/pkg/apiserver/webhooks/transfer-validate_test.go
index a18b067054..a908621608 100644
--- a/pkg/apiserver/webhooks/transfer-validate_test.go
+++ b/pkg/apiserver/webhooks/transfer-validate_test.go
@@ -196,7 +196,7 @@ var _ = Describe("ObjectTransfer webhook", func() {
 			}}, nil),
 		)
 
-		It("Should accept good stuff", func() {
+		It("Should accept good stuff with deprecation warning", func() {
 			ot := &cdiv1.ObjectTransfer{
 				ObjectMeta: metav1.ObjectMeta{
 					Name: "ot",
@@ -231,6 +231,8 @@ var _ = Describe("ObjectTransfer webhook", func() {
 
 			resp := validateObjectTransfers(ar, nil, nil)
 			Expect(resp.Allowed).To(BeTrue())
+			Expect(resp.Warnings).ToNot(BeEmpty())
+			Expect(resp.Warnings[0]).To(ContainSubstring("ObjectTransfer feature is deprecated"))
 		})
 	})
 
diff --git a/pkg/operator/resources/cluster/BUILD.bazel b/pkg/operator/resources/cluster/BUILD.bazel
index f0e8652c3a..b73d6f9b32 100644
--- a/pkg/operator/resources/cluster/BUILD.bazel
+++ b/pkg/operator/resources/cluster/BUILD.bazel
@@ -34,6 +34,7 @@ go_library(
         "//vendor/k8s.io/apimachinery/pkg/runtime:go_default_library",
         "//vendor/k8s.io/apimachinery/pkg/util/yaml:go_default_library",
         "//vendor/k8s.io/kube-aggregator/pkg/apis/apiregistration/v1:go_default_library",
+        "//vendor/k8s.io/utils/ptr:go_default_library",
         "//vendor/kubevirt.io/controller-lifecycle-operator-sdk/pkg/sdk/resources:go_default_library",
         "//vendor/sigs.k8s.io/controller-runtime/pkg/client:go_default_library",
     ],
diff --git a/pkg/operator/resources/cluster/object-transfer.go b/pkg/operator/resources/cluster/object-transfer.go
index 4a1761e36f..97e9d0265c 100644
--- a/pkg/operator/resources/cluster/object-transfer.go
+++ b/pkg/operator/resources/cluster/object-transfer.go
@@ -1,10 +1,12 @@
 package cluster
 
 import (
+	"fmt"
 	"strings"
 
 	extv1 "k8s.io/apiextensions-apiserver/pkg/apis/apiextensions/v1"
 	k8syaml "k8s.io/apimachinery/pkg/util/yaml"
+	"k8s.io/utils/ptr"
 
 	"kubevirt.io/containerized-data-importer/pkg/operator/resources"
 )
@@ -18,5 +20,10 @@ func NewObjectTransferCrd() *extv1.CustomResourceDefinition {
 func createObjectTransferCRD() *extv1.CustomResourceDefinition {
 	crd := extv1.CustomResourceDefinition{}
 	_ = k8syaml.NewYAMLToJSONDecoder(strings.NewReader(resources.CDICRDs["objecttransfer"])).Decode(&crd)
+	for i := range crd.Spec.Versions {
+		deprecationWarning := fmt.Sprintf("cdi.kubevirt.io/%s createObjectTransferCRD is now deprecated and will be removed in v1.", crd.Spec.Versions[i].Name)
+		crd.Spec.Versions[i].Deprecated = true
+		crd.Spec.Versions[i].DeprecationWarning = ptr.To(deprecationWarning)
+	}
 	return &crd
 }
diff --git a/pkg/operator/resources/crds_generated.go b/pkg/operator/resources/crds_generated.go
index 3182da622d..d60c2fa0be 100644
--- a/pkg/operator/resources/crds_generated.go
+++ b/pkg/operator/resources/crds_generated.go
@@ -7371,7 +7371,11 @@ spec:
     name: v1beta1
     schema:
       openAPIV3Schema:
-        description: ObjectTransfer is the cluster scoped object transfer resource
+        description: |-
+          Deprecated for removal in v1.
+
+
+          ObjectTransfer is the cluster scoped object transfer resource
         properties:
           apiVersion:
             description: |-
diff --git a/staging/src/kubevirt.io/containerized-data-importer-api/pkg/apis/core/v1beta1/types_transfer.go b/staging/src/kubevirt.io/containerized-data-importer-api/pkg/apis/core/v1beta1/types_transfer.go
index d87e5ffb25..fb02cacb64 100644
--- a/staging/src/kubevirt.io/containerized-data-importer-api/pkg/apis/core/v1beta1/types_transfer.go
+++ b/staging/src/kubevirt.io/containerized-data-importer-api/pkg/apis/core/v1beta1/types_transfer.go
@@ -25,6 +25,8 @@ import (
 // see https://github.com/kubernetes/code-generator/issues/59
 // +genclient:nonNamespaced
 
+// Deprecated for removal in v1.
+//
 // ObjectTransfer is the cluster scoped object transfer resource
 // +genclient
 // +k8s:deepcopy-gen:interfaces=k8s.io/apimachinery/pkg/runtime.Object