diff --git a/changelog.d/2-features/WPB-25982-distribution-state-for-collaborators b/changelog.d/2-features/WPB-25982-distribution-state-for-collaborators
new file mode 100644
index 00000000000..6fe187c9876
--- /dev/null
+++ b/changelog.d/2-features/WPB-25982-distribution-state-for-collaborators
@@ -0,0 +1 @@
+Distribution state for collaborators.
diff --git a/libs/wire-api/src/Wire/API/Routes/Public/Brig.hs b/libs/wire-api/src/Wire/API/Routes/Public/Brig.hs
index 760b7da289a..d9daf003975 100644
--- a/libs/wire-api/src/Wire/API/Routes/Public/Brig.hs
+++ b/libs/wire-api/src/Wire/API/Routes/Public/Brig.hs
@@ -188,6 +188,17 @@ type UserAPI =
                :> ReqBody '[JSON] EmailUpdate
                :> Put '[JSON] ()
            )
+    :<|> Named
+           "update-collaborator-settings"
+           ( Summary "Set user's distribution status as collaborator in other teams.  Default: none"
+               :> From 'V5
+               :> ZLocalUser
+               :> "users"
+               :> QualifiedCaptureUserId "uid"
+               :> "collaborator-settings"
+               :> ReqBody '[JSON] CollaboratorSettings
+               :> Put '[JSON] ()
+           )
     :<|> Named
            "get-handle-info-unqualified"
            ( Summary "(deprecated, use /search/contacts) Get information on a user handle"
diff --git a/libs/wire-api/src/Wire/API/User.hs b/libs/wire-api/src/Wire/API/User.hs
index 889e22a6191..95d83ef9849 100644
--- a/libs/wire-api/src/Wire/API/User.hs
+++ b/libs/wire-api/src/Wire/API/User.hs
@@ -35,6 +35,7 @@ module Wire.API.User
     -- User (should not be here)
     User (..),
     UserType (..),
+    CollaboratorSettings (..),
     isSamlUser,
     userId,
     userDeleted,
@@ -626,6 +627,8 @@ data User = User
     -- | Set if the user represents an external service,
     -- i.e. it is a "bot".
     userService :: Maybe ServiceRef,
+    -- | How user behaves in other teams as collaborator.
+    userCollaboratorSettings :: Maybe CollaboratorSettings,
     -- | not required; must be unique if present
     userHandle :: Maybe Handle,
     -- | Set if the user is ephemeral
@@ -642,6 +645,40 @@ data User = User
   deriving (Arbitrary) via (GenericUniform User)
   deriving (ToJSON, FromJSON, S.ToSchema) via (Schema User)
 
+-- | How user behaves in other teams as collaborator.
+-- TODO(fisx): maybe move to a better place?
+-- TODO(fisx): golden tests.
+data CollaboratorSettings = CollaboratorSettings
+  { distributionState :: CollaboratorDistributionState
+  }
+  deriving stock (Eq, Ord, Show, Generic)
+  deriving (Arbitrary) via (GenericUniform CollaboratorSettings)
+  deriving (ToJSON, FromJSON, S.ToSchema) via (Schema CollaboratorSettings)
+
+instance ToSchema CollaboratorSettings where
+  schema =
+    object $
+      CollaboratorSettings
+        <$> distributionState .= field "distribution_state" schema
+
+-- TODO(fisx): maybe move to a better place?
+data CollaboratorDistributionState
+  = CollaboratorDraft
+  | CollaboratorNoDistribution
+  | CollaboratorFullDistribution
+  deriving stock (Eq, Ord, Show, Generic)
+  deriving (Arbitrary) via (GenericUniform CollaboratorDistributionState)
+  deriving (ToJSON, FromJSON, S.ToSchema) via (Schema CollaboratorDistributionState)
+
+instance ToSchema CollaboratorDistributionState where
+  schema =
+    enum @Text $
+      mconcat
+        [ element "draft" CollaboratorDraft,
+          element "none" CollaboratorNoDistribution,
+          element "full" CollaboratorFullDistribution
+        ]
+
 isSamlUser :: User -> Bool
 isSamlUser usr = do
   case usr.userIdentity of
@@ -682,6 +719,7 @@ userObjectSchema =
     <*> userStatus .= field "status" schema
     <*> userLocale .= field "locale" schema
     <*> userService .= maybe_ (optField "service" schema)
+    <*> userCollaboratorSettings .= maybe_ (optField "collaborator_settings" schema)
     <*> userHandle .= maybe_ (optField "handle" schema)
     <*> userExpire .= maybe_ (optField "expires_at" schema)
     <*> userTeam .= maybe_ (optField "team" schema)
diff --git a/libs/wire-api/test/golden/Test/Wire/API/Golden/Generated/SelfProfile_user.hs b/libs/wire-api/test/golden/Test/Wire/API/Golden/Generated/SelfProfile_user.hs
index 44eab4b0d5d..4f1758f4f25 100644
--- a/libs/wire-api/test/golden/Test/Wire/API/Golden/Generated/SelfProfile_user.hs
+++ b/libs/wire-api/test/golden/Test/Wire/API/Golden/Generated/SelfProfile_user.hs
@@ -59,6 +59,7 @@ testObject_SelfProfile_user_1 =
                       _serviceRefProvider = Id (fromJust (UUID.fromString "00000000-0000-0001-0000-000000000001"))
                     }
                 ),
+            userCollaboratorSettings = Nothing,
             userHandle = Just (fromJust (parseHandle "do9-5")),
             userExpire = Just (fromJust (readUTCTimeMillis "1864-05-07T21:09:29.342Z")),
             userTeam = Just (Id (fromJust (UUID.fromString "00000001-0000-0002-0000-000000000002"))),