The VERITAS gamma ray observatory (Amado, AZ, veritas.sao.arizona.edu) uses the Imaging Atmospheric Cherenkov Technique (IACT) to study sources of Very High Energy (VHE: E > 100 GeV) gamma rays. Key science results from the first three years of observation include the discovery of the first VHE emitting starburst galaxy, detection of new Active Galactic Nuclei (AGN), SuperNova Remnants (SNR), gamma ray binaries as well as strong limits on the emission of VHE gamma rays from dark matter annihilation in dwarf galaxies. In April 2010, VERITAS received funding to upgrade the photomultiplier tube cameras, pattern triggers, and networking systems in order to improve detector sensitivity, especially near detection threshold (E ~ 100 GeV). In this paper we describe the status of the VERITAS upgrade and the expected improvements in sensitivity when it is completed in summer 2012.