diff --git a/src/openai/lib/azure.py b/src/openai/lib/azure.py
index a994e4256c..99b54c00e1 100644
--- a/src/openai/lib/azure.py
+++ b/src/openai/lib/azure.py
@@ -52,6 +52,8 @@ def __init__(self) -> None:
 class BaseAzureClient(BaseClient[_HttpxClientT, _DefaultStreamT]):
     _azure_endpoint: httpx.URL | None
     _azure_deployment: str | None
+    # https://learn.microsoft.com/en-us/azure/ai-foundry/openai/api-version-lifecycle?tabs=entra#next-generation-api-1
+    _azure_next_supported_generation_api_version: list[str] = ["preview", "latest"]
 
     @override
     def _build_request(
@@ -62,7 +64,7 @@ def _build_request(
     ) -> httpx.Request:
         if options.url in _deployments_endpoints and is_mapping(options.json_data):
             model = options.json_data.get("model")
-            if model is not None and "/deployments" not in str(self.base_url.path):
+            if model is not None and self._api_version not in self._azure_next_supported_generation_api_version and "/deployments" not in str(self.base_url.path):  # pylint: disable=no-member
                 options.url = f"/deployments/{model}{options.url}"
 
         return super()._build_request(options, retries_taken=retries_taken)
diff --git a/tests/lib/test_azure.py b/tests/lib/test_azure.py
index 52c24eba27..d79caf5915 100644
--- a/tests/lib/test_azure.py
+++ b/tests/lib/test_azure.py
@@ -802,3 +802,25 @@ def test_client_sets_base_url(client: Client) -> None:
         )
     )
     assert req.url == "https://example-resource.azure.openai.com/openai/models?api-version=2024-02-01"
+
+@pytest.mark.parametrize("api_version", ["preview", "latest"])
+def test_client_sets_base_url_with_new_generation_api_version(api_version: str) -> None:
+    client = AzureOpenAI(
+        api_version=api_version,
+        api_key="example API key",
+        base_url="https://example-resource.azure.openai.com/openai/v1/"
+    )
+    assert client.base_url == "https://example-resource.azure.openai.com/openai/v1/"
+
+
+    req = client._build_request(
+        FinalRequestOptions.construct(
+            method="post",
+            url="/chat/completions",
+            json_data={"model": "placeholder"},
+        )
+    )
+    assert (
+        req.url
+        == f"https://example-resource.azure.openai.com/openai/v1/chat/completions?api-version={api_version}"
+    )