diff --git a/HISTORY b/HISTORY
index d8c2a437..4c0b5815 100644
--- a/HISTORY
+++ b/HISTORY
@@ -272,3 +272,6 @@ Issue #224 Update categories 19,20,21,23
 
 2.8.7 (python_v0.7.6)
 Issue #232 When CAT48/250 is 0, no output is displayed
+
+2.8.7 (python_v0.7.7)
+Issue #231 Memory leak in parse_with_offset python function
\ No newline at end of file
diff --git a/asterix/test/test_memory_leak.py b/asterix/test/test_memory_leak.py
new file mode 100644
index 00000000..a2b5e277
--- /dev/null
+++ b/asterix/test/test_memory_leak.py
@@ -0,0 +1,20 @@
+# Test for memory leak problem in https://github.com/CroatiaControlLtd/asterix/issues/231
+
+import asterix
+from memory_profiler import profile
+
+@profile
+def func(data):
+    p = asterix.parse_with_offset(data, 0, 100)
+    #p = asterix.parse(data)
+    #print(p)
+
+if __name__ == '__main__':
+    print(asterix.__version__)
+
+    with open('../sample_data/cat062cat065.raw', 'rb') as f:
+        data = f.read()
+
+    for i in range(10):
+        print('\n%d ------------------' % i)
+        func(data)
\ No newline at end of file
diff --git a/asterix/version.py b/asterix/version.py
index 79866aba..b8308a14 100644
--- a/asterix/version.py
+++ b/asterix/version.py
@@ -1 +1 @@
-__version__ = '0.7.6'
+__version__ = '0.7.7'
diff --git a/src/python/python_parser.cpp b/src/python/python_parser.cpp
index 9801290a..e38c5d2c 100644
--- a/src/python/python_parser.cpp
+++ b/src/python/python_parser.cpp
@@ -128,6 +128,9 @@ python_parse_with_offset(const unsigned char *pBuf, Py_ssize_t len, unsigned int
             delete pData;
             PyObject *py_m_nPos = Py_BuildValue("l", m_nPos);
             PyObject *py_output = PyTuple_Pack(2, lst, py_m_nPos);
+            // Decrease references since the tuple holds references to them now
+            Py_DECREF(lst);
+            Py_DECREF(py_m_nPos);
             return py_output;
         }
     }