diff --git a/test-infra/image-builder/roles/kubevirt-images/defaults/main.yml b/test-infra/image-builder/roles/kubevirt-images/defaults/main.yml
index 4798b539d..30cf414d3 100644
--- a/test-infra/image-builder/roles/kubevirt-images/defaults/main.yml
+++ b/test-infra/image-builder/roles/kubevirt-images/defaults/main.yml
@@ -36,6 +36,12 @@ images:
     checksum: sha256:e3c1b309d9203604922d6e255c2c5d098a309c2d46215d8fc026954f3c5c27a0
     converted: true
 
+  fedora-coreos:
+    filename: fedora-coreos-32.20200601.3.0-openstack.x86_64.qcow2.xz
+    url: https://builds.coreos.fedoraproject.org/prod/streams/stable/builds/32.20200601.3.0/x86_64/fedora-coreos-32.20200601.3.0-openstack.x86_64.qcow2.xz
+    checksum: sha256:fe78c348189d745eb5f6f80ff9eb2af67da8e84880d264f4301faaf7c2a72646
+    converted: true
+
   centos-7:
     filename: CentOS-7-x86_64-GenericCloud-1809.qcow2
     url: http://cloud.centos.org/centos/7/images/CentOS-7-x86_64-GenericCloud-1809.qcow2
diff --git a/test-infra/image-builder/roles/kubevirt-images/tasks/main.yml b/test-infra/image-builder/roles/kubevirt-images/tasks/main.yml
index 270a39f7b..aae85e409 100644
--- a/test-infra/image-builder/roles/kubevirt-images/tasks/main.yml
+++ b/test-infra/image-builder/roles/kubevirt-images/tasks/main.yml
@@ -13,16 +13,22 @@
   with_dict:
     - "{{ images }}"
 
+- name: Unxz compressed images
+  command: unxz --force {{ images_dir }}/{{ item.value.filename }}
+  with_dict:
+    - "{{ images }}"
+  when:
+    - item.value.filename.endswith('.xz')
+
 - name: Convert images which is not in qcow2 format
-  command: qemu-img convert -O qcow2 {{ images_dir }}/{{ item.value.filename }} {{ images_dir }}/{{ item.key }}.qcow2
+  command: qemu-img convert -O qcow2 {{ images_dir }}/{{ item.value.filename.rstrip('.xz') }} {{ images_dir }}/{{ item.key }}.qcow2
   with_dict:
     - "{{ images }}"
   when:
     - not (item.value.converted|bool)
-  register: converted
 
 - name: Make sure all images are ending with qcow2
-  command: cp {{ images_dir }}/{{ item.value.filename }} {{ images_dir }}/{{ item.key }}.qcow2
+  command: cp {{ images_dir }}/{{ item.value.filename.rstrip('.xz') }} {{ images_dir }}/{{ item.key }}.qcow2
   with_dict:
     - "{{ images }}"
   when: