diff --git a/packages/kit/package.json b/packages/kit/package.json
index 73ab04daec..ea46e302d5 100644
--- a/packages/kit/package.json
+++ b/packages/kit/package.json
@@ -14,7 +14,7 @@
   },
   "dependencies": {
     "@nuxt/schema": "3.0.0-rc.8",
-    "c12": "^0.2.9",
+    "c12": "^0.2.10",
     "consola": "^2.15.3",
     "defu": "^6.1.0",
     "globby": "^13.1.2",
diff --git a/packages/kit/src/loader/config.ts b/packages/kit/src/loader/config.ts
index 384f3066b8..b455cf2af3 100644
--- a/packages/kit/src/loader/config.ts
+++ b/packages/kit/src/loader/config.ts
@@ -11,6 +11,7 @@ export async function loadNuxtConfig (opts: LoadNuxtConfigOptions): Promise<Nuxt
     name: 'nuxt',
     configFile: 'nuxt.config',
     rcFile: '.nuxtrc',
+    extend: { extendKey: ['theme', 'extends'] },
     dotenv: true,
     globalRc: true,
     ...opts
diff --git a/packages/nuxi/package.json b/packages/nuxi/package.json
index 532fa8de0b..d785b9a38f 100644
--- a/packages/nuxi/package.json
+++ b/packages/nuxi/package.json
@@ -24,7 +24,7 @@
     "@types/flat": "^5.0.2",
     "@types/mri": "^1.1.1",
     "@types/semver": "^7",
-    "c12": "^0.2.9",
+    "c12": "^0.2.10",
     "chokidar": "^3.5.3",
     "clear": "^0.1.0",
     "clipboardy": "^3.0.0",
diff --git a/packages/schema/package.json b/packages/schema/package.json
index 15fbf21c4c..416a281f84 100644
--- a/packages/schema/package.json
+++ b/packages/schema/package.json
@@ -21,7 +21,7 @@
     "vite": "~3.0.9"
   },
   "dependencies": {
-    "c12": "^0.2.9",
+    "c12": "^0.2.10",
     "create-require": "^1.1.1",
     "defu": "^6.1.0",
     "jiti": "^1.14.0",
diff --git a/packages/schema/src/config/_common.ts b/packages/schema/src/config/_common.ts
index 6ac2ed6940..b923a75811 100644
--- a/packages/schema/src/config/_common.ts
+++ b/packages/schema/src/config/_common.ts
@@ -11,7 +11,7 @@ import { defineUntypedSchema } from 'untyped'
 
 export default defineUntypedSchema({
   /**
-   * Extend nested configurations from multiple local or remote sources.
+   * Extend project from multiple local or remote sources.
    *
    * Value should be either a string or array of strings pointing to source directories or config path relative to current config.
    *
@@ -23,6 +23,19 @@ export default defineUntypedSchema({
    */
   extends: null,
 
+  /**
+   * Extend project from a local or remote source.
+   *
+   * Value should be a string pointing to source directory or config path relative to current config.
+   *
+   * You can use `github:`, `gitlab:`, `bitbucket:` or `https://` to extend from a remote git repository.
+   *
+   * @type {string}
+   *
+   * @version 3
+   */
+   theme: null,
+
   /**
    * Define the workspace directory of your application.
    *
diff --git a/test/fixtures/basic/nuxt.config.ts b/test/fixtures/basic/nuxt.config.ts
index 6063257afb..6e762ec43e 100644
--- a/test/fixtures/basic/nuxt.config.ts
+++ b/test/fixtures/basic/nuxt.config.ts
@@ -11,8 +11,8 @@ export default defineNuxtConfig({
   },
   buildDir: process.env.NITRO_BUILD_DIR,
   builder: process.env.TEST_WITH_WEBPACK ? 'webpack' : 'vite',
+  theme: './extends/bar',
   extends: [
-    './extends/bar',
     './extends/node_modules/foo'
   ],
   nitro: {
diff --git a/yarn.lock b/yarn.lock
index 160ceae4c6..b1e6bd3169 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1651,7 +1651,7 @@ __metadata:
     "@nuxt/schema": 3.0.0-rc.8
     "@types/lodash.template": ^4
     "@types/semver": ^7
-    c12: ^0.2.9
+    c12: ^0.2.10
     consola: ^2.15.3
     defu: ^6.1.0
     globby: ^13.1.2
@@ -1684,7 +1684,7 @@ __metadata:
   dependencies:
     "@types/lodash.template": ^4
     "@types/semver": ^7
-    c12: ^0.2.9
+    c12: ^0.2.10
     create-require: ^1.1.1
     defu: ^6.1.0
     jiti: ^1.14.0
@@ -4063,6 +4063,21 @@ __metadata:
   languageName: node
   linkType: hard
 
+"c12@npm:^0.2.10":
+  version: 0.2.10
+  resolution: "c12@npm:0.2.10"
+  dependencies:
+    defu: ^6.0.0
+    dotenv: ^16.0.1
+    gittar: ^0.1.1
+    jiti: ^1.14.0
+    mlly: ^0.5.11
+    pathe: ^0.3.4
+    rc9: ^1.2.2
+  checksum: 5c8f83a2a10717dd428d1c81801b5771694d6f2b381fda955d159d5e7943b7c958953764edab92033c84186c1d8444cbc0db10e771222b58c2ccbcff2a6c1eba
+  languageName: node
+  linkType: hard
+
 "c12@npm:^0.2.7, c12@npm:^0.2.9":
   version: 0.2.9
   resolution: "c12@npm:0.2.9"
@@ -9392,7 +9407,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"mlly@npm:^0.5.12, mlly@npm:^0.5.13, mlly@npm:^0.5.14, mlly@npm:^0.5.2, mlly@npm:^0.5.7":
+"mlly@npm:^0.5.11, mlly@npm:^0.5.12, mlly@npm:^0.5.13, mlly@npm:^0.5.14, mlly@npm:^0.5.2, mlly@npm:^0.5.7":
   version: 0.5.14
   resolution: "mlly@npm:0.5.14"
   dependencies:
@@ -9921,7 +9936,7 @@ __metadata:
     "@types/flat": ^5.0.2
     "@types/mri": ^1.1.1
     "@types/semver": ^7
-    c12: ^0.2.9
+    c12: ^0.2.10
     chokidar: ^3.5.3
     clear: ^0.1.0
     clipboardy: ^3.0.0