diff --git a/homeassistant/components/knx/__init__.py b/homeassistant/components/knx/__init__.py
index 11ed7fc3c7c..0fe3e133b6e 100644
--- a/homeassistant/components/knx/__init__.py
+++ b/homeassistant/components/knx/__init__.py
@@ -56,8 +56,6 @@ from .schema import (
 
 _LOGGER = logging.getLogger(__name__)
 
-CONF_KNX_CONFIG = "config_file"
-
 CONF_KNX_ROUTING = "routing"
 CONF_KNX_TUNNELING = "tunneling"
 CONF_KNX_FIRE_EVENT = "fire_event"
@@ -81,13 +79,12 @@ CONFIG_SCHEMA = vol.Schema(
     {
         DOMAIN: vol.All(
             # deprecated since 2021.4
-            cv.deprecated(CONF_KNX_CONFIG),
+            cv.deprecated("config_file"),
             # deprecated since 2021.2
             cv.deprecated(CONF_KNX_FIRE_EVENT),
             cv.deprecated("fire_event_filter", replacement_key=CONF_KNX_EVENT_FILTER),
             vol.Schema(
                 {
-                    vol.Optional(CONF_KNX_CONFIG): cv.string,
                     vol.Exclusive(
                         CONF_KNX_ROUTING, "connection_type"
                     ): ConnectionSchema.ROUTING_SCHEMA,
@@ -313,7 +310,6 @@ class KNXModule:
     def init_xknx(self) -> None:
         """Initialize XKNX object."""
         self.xknx = XKNX(
-            config=self.config_file(),
             own_address=self.config[DOMAIN][CONF_KNX_INDIVIDUAL_ADDRESS],
             rate_limit=self.config[DOMAIN][CONF_KNX_RATE_LIMIT],
             multicast_group=self.config[DOMAIN][CONF_KNX_MCAST_GRP],
@@ -332,15 +328,6 @@ class KNXModule:
         """Stop XKNX object. Disconnect from tunneling or Routing device."""
         await self.xknx.stop()
 
-    def config_file(self) -> str | None:
-        """Resolve and return the full path of xknx.yaml if configured."""
-        config_file = self.config[DOMAIN].get(CONF_KNX_CONFIG)
-        if not config_file:
-            return None
-        if not config_file.startswith("/"):
-            return self.hass.config.path(config_file)
-        return config_file  # type: ignore
-
     def connection_config(self) -> ConnectionConfig:
         """Return the connection_config."""
         if CONF_KNX_TUNNELING in self.config[DOMAIN]:
diff --git a/homeassistant/components/knx/manifest.json b/homeassistant/components/knx/manifest.json
index f15e909755c..abb7fff37e0 100644
--- a/homeassistant/components/knx/manifest.json
+++ b/homeassistant/components/knx/manifest.json
@@ -2,7 +2,7 @@
   "domain": "knx",
   "name": "KNX",
   "documentation": "https://www.home-assistant.io/integrations/knx",
-  "requirements": ["xknx==0.17.5"],
+  "requirements": ["xknx==0.18.0"],
   "codeowners": ["@Julius2342", "@farmio", "@marvin-w"],
   "quality_scale": "silver"
 }
diff --git a/requirements_all.txt b/requirements_all.txt
index e0ef50debbb..2c9db42da3b 100644
--- a/requirements_all.txt
+++ b/requirements_all.txt
@@ -2338,7 +2338,7 @@ xbox-webapi==2.0.8
 xboxapi==2.0.1
 
 # homeassistant.components.knx
-xknx==0.17.5
+xknx==0.18.0
 
 # homeassistant.components.bluesound
 # homeassistant.components.rest
diff --git a/requirements_test_all.txt b/requirements_test_all.txt
index 4520ee3893a..e369689e492 100644
--- a/requirements_test_all.txt
+++ b/requirements_test_all.txt
@@ -1226,7 +1226,7 @@ wolf_smartset==0.1.8
 xbox-webapi==2.0.8
 
 # homeassistant.components.knx
-xknx==0.17.5
+xknx==0.18.0
 
 # homeassistant.components.bluesound
 # homeassistant.components.rest