diff --git a/python/packages/anthropic/agent_framework_anthropic/_chat_client.py b/python/packages/anthropic/agent_framework_anthropic/_chat_client.py
index 4cab69446e3..cbfa14ad21a 100644
--- a/python/packages/anthropic/agent_framework_anthropic/_chat_client.py
+++ b/python/packages/anthropic/agent_framework_anthropic/_chat_client.py
@@ -79,7 +79,6 @@
 
 ANTHROPIC_DEFAULT_MAX_TOKENS: Final[int] = 1024
 BETA_FLAGS: Final[list[str]] = ["mcp-client-2025-04-04", "code-execution-2025-08-25"]
-STRUCTURED_OUTPUTS_BETA_FLAG: Final[str] = "structured-outputs-2025-11-13"
 
 ResponseModelT = TypeVar("ResponseModelT", bound=BaseModel | None, default=None)
 AnthropicAsyncClient = AsyncAnthropic | AsyncAnthropicBedrock | AsyncAnthropicFoundry | AsyncAnthropicVertex
@@ -638,12 +637,17 @@ def _prepare_options(
         if tools_config := self._prepare_tools_for_anthropic(options):
             run_options.update(tools_config)
 
-        # response_format - use native output_format for structured outputs
+        # response_format - emit Anthropic's GA ``output_config.format`` shape.
+        # The deprecated ``output_format`` parameter (gated by the
+        # ``structured-outputs-2025-11-13`` beta flag) produced concatenated /
+        # malformed JSON when combined with tools — the GA path does not.
+        # Merge into any caller-supplied ``output_config`` so e.g. the
+        # adaptive-thinking ``effort`` setting survives the transformation.
         response_format = options.get("response_format")
         if response_format is not None:
-            run_options["output_format"] = self._prepare_response_format(response_format)
-            # Add the structured outputs beta flag
-            run_options["betas"].add(STRUCTURED_OUTPUTS_BETA_FLAG)
+            output_config = dict(run_options.get("output_config") or {})
+            output_config["format"] = self._prepare_response_format(response_format)
+            run_options["output_config"] = output_config
 
         return run_options
 
@@ -693,7 +697,7 @@ def _prepare_betas(self, options: Mapping[str, Any]) -> set[str]:
         }
 
     def _prepare_response_format(self, response_format: type[BaseModel] | dict[str, Any]) -> dict[str, Any]:
-        """Prepare the output_format parameter for structured output.
+        """Build the ``output_config.format`` payload for Anthropic structured outputs.
 
         Args:
             response_format: Either a Pydantic model class or a dict with the schema specification.
@@ -701,7 +705,8 @@ def _prepare_response_format(self, response_format: type[BaseModel] | dict[str,
                 or direct format with "schema" key, or the raw schema dict itself.
 
         Returns:
-            A dictionary representing the output_format for Anthropic's structured outputs.
+            A ``{"type": "json_schema", "schema": ...}`` dict — the value placed
+            under ``output_config["format"]`` on the GA structured-outputs path.
         """
         if isinstance(response_format, dict):
             if "json_schema" in response_format:
diff --git a/python/packages/anthropic/pyproject.toml b/python/packages/anthropic/pyproject.toml
index 706acb1574e..b5eee7f78ce 100644
--- a/python/packages/anthropic/pyproject.toml
+++ b/python/packages/anthropic/pyproject.toml
@@ -24,7 +24,7 @@ classifiers = [
 ]
 dependencies = [
     "agent-framework-core>=1.10.0,<2",
-    "anthropic>=0.80.0,<0.80.1",
+    "anthropic>=0.80.0,<0.117.0",
 ]
 
 [tool.uv]
diff --git a/python/packages/anthropic/tests/test_anthropic_client.py b/python/packages/anthropic/tests/test_anthropic_client.py
index d1dca21e9b4..6cb1907b0ca 100644
--- a/python/packages/anthropic/tests/test_anthropic_client.py
+++ b/python/packages/anthropic/tests/test_anthropic_client.py
@@ -1986,6 +1986,74 @@ class TestModel(BaseModel):
     assert "properties" in result["schema"]
 
 
+async def test_prepare_options_uses_output_config_for_response_format(
+    mock_anthropic_client: MagicMock,
+) -> None:
+    """``response_format`` is forwarded as GA ``output_config.format`` (not the deprecated ``output_format``).
+
+    The deprecated ``output_format`` parameter, gated by the
+    ``structured-outputs-2025-11-13`` beta flag, produced concatenated /
+    malformed JSON when combined with tools. The GA ``output_config`` shape
+    works correctly with tools, so we emit that and no longer set the beta
+    flag.
+    """
+
+    class StructuredOut(BaseModel):
+        answer: str
+
+    client = create_test_anthropic_client(mock_anthropic_client)
+    messages = [Message(role="user", contents=["Hello"])]
+    chat_options = ChatOptions[StructuredOut](max_tokens=100, response_format=StructuredOut)
+
+    run_options = client._prepare_options(messages, chat_options)
+
+    assert "output_format" not in run_options
+    assert "output_config" in run_options
+    fmt = run_options["output_config"]["format"]
+    assert fmt["type"] == "json_schema"
+    assert fmt["schema"]["additionalProperties"] is False
+    assert "answer" in fmt["schema"]["properties"]
+    # The deprecated structured-outputs beta flag is no longer needed on the
+    # GA path and must not leak into ``betas``.
+    assert "structured-outputs-2025-11-13" not in run_options["betas"]
+
+
+async def test_prepare_options_preserves_caller_supplied_output_config_effort(
+    mock_anthropic_client: MagicMock,
+) -> None:
+    """A caller-supplied ``output_config.effort`` (e.g. adaptive thinking) survives the format merge."""
+
+    class StructuredOut(BaseModel):
+        answer: str
+
+    client = create_test_anthropic_client(mock_anthropic_client)
+    messages = [Message(role="user", contents=["Hello"])]
+    # ``output_config`` is provider-specific; pass it through additional kwargs
+    # the way a caller would when configuring adaptive thinking.
+    run_options = client._prepare_options(
+        messages,
+        ChatOptions[StructuredOut](max_tokens=100, response_format=StructuredOut),
+        output_config={"effort": "high"},
+    )
+
+    output_config = run_options["output_config"]
+    assert output_config["effort"] == "high"
+    assert output_config["format"]["type"] == "json_schema"
+    assert "answer" in output_config["format"]["schema"]["properties"]
+
+
+async def test_prepare_options_no_response_format_omits_output_config(
+    mock_anthropic_client: MagicMock,
+) -> None:
+    """Without ``response_format``, no ``output_config`` is added implicitly."""
+    client = create_test_anthropic_client(mock_anthropic_client)
+    messages = [Message(role="user", contents=["Hello"])]
+    run_options = client._prepare_options(messages, ChatOptions(max_tokens=100))
+
+    assert "output_config" not in run_options
+    assert "output_format" not in run_options
+
+
 # Message Preparation Tests
 
 
diff --git a/python/uv.lock b/python/uv.lock
index 1900787c191..30a88ffe097 100644
--- a/python/uv.lock
+++ b/python/uv.lock
@@ -230,7 +230,7 @@ dependencies = [
 [package.metadata]
 requires-dist = [
     { name = "agent-framework-core", editable = "packages/core" },
-    { name = "anthropic", specifier = ">=0.80.0,<0.80.1" },
+    { name = "anthropic", specifier = ">=0.80.0,<0.117.0" },
 ]
 
 [[package]]
@@ -1182,7 +1182,7 @@ wheels = [
 
 [[package]]
 name = "anthropic"
-version = "0.80.0"
+version = "0.116.0"
 source = { registry = "https://pypi.org/simple" }
 dependencies = [
     { name = "anyio", marker = "sys_platform == 'darwin' or sys_platform == 'linux' or sys_platform == 'win32'" },
@@ -1194,9 +1194,9 @@ dependencies = [
     { name = "sniffio", marker = "sys_platform == 'darwin' or sys_platform == 'linux' or sys_platform == 'win32'" },
     { name = "typing-extensions", marker = "sys_platform == 'darwin' or sys_platform == 'linux' or sys_platform == 'win32'" },
 ]
-sdist = { url = "https://files.pythonhosted.org/packages/7f/63/791e14ef5a8ecb485cef5b5d058c7ca3ad6c50a2f94cf4cea5231c6b7c16/anthropic-0.80.0.tar.gz", hash = "sha256:ef042586673fdcab2a6ffd381aa5f9a1bcce38ffe73c07fe70bd56d12b8124ba", size = 533291, upload-time = "2026-02-17T19:26:26.717Z" }
+sdist = { url = "https://files.pythonhosted.org/packages/66/a2/d31f14e28d49bae983a3634e38dfb4b31c50110b5e403596c5c6a20b23f8/anthropic-0.116.0.tar.gz", hash = "sha256:5fc248fbb9fe03ef686f8a774f81586bca31a043260aab88b387ea3660f4a396", size = 949149, upload-time = "2026-07-02T19:08:10.534Z" }
 wheels = [
-    { url = "https://files.pythonhosted.org/packages/b2/4b/665f29338f51d0c2f9e04b276ea54cc1e957ae5c521a0ad868aa80abc608/anthropic-0.80.0-py3-none-any.whl", hash = "sha256:dad0e40ec371ee686e9ffb2e0cb461a0ed51447fa100927fb5d39b174c286d6f", size = 453667, upload-time = "2026-02-17T19:26:29.96Z" },
+    { url = "https://files.pythonhosted.org/packages/c7/dd/2a1e81cf1b163acc340afc4ec74ed1d86f5eed1a809fabdeed3e0997b346/anthropic-0.116.0-py3-none-any.whl", hash = "sha256:6c0a7698e8d652455da3499978279bb2588c7264d0a35be3666009a4258c8256", size = 956896, upload-time = "2026-07-02T19:08:08.756Z" },
 ]
 
 [[package]]