GitLab runner with Docker: client version is too old issue

I Ubuntu 20.04.6 LTS I have installed GitLab Runner that I want to use with Docker.When I try to execute a job, I get following message:

Using Docker executor with image python:3.9.13-slim-buster ...ERROR: Preparation failed: Error response from daemon: {"message":"client version 1.18 is too old. Minimum supported API version is 1.24, please upgrade your client to a newer version"} (executor_docker.go:1147:0s)

This quite strange since I have following version of Docker:

Client: Docker Engine - CommunityVersion:           26.1.2 API version:       1.45 Go version:        go1.21.10 OS/Arch:           linux/amd64 Context:           defaultServer: Docker Engine - Community Engine:  Version:          26.1.2  API version:      1.45 (minimum version 1.24)  Go version:       go1.21.10  OS/Arch:          linux/amd64  Experimental:     false containerd:  Version:          1.6.31 runc:  Version:          1.1.12 docker-init:  Version:          0.19.0

And GitLab Runner version is:

Version:      11.2.0Git revision: 11.2.0Git branch:   HEADGO version:   go1.10.4Built:        unknownOS/Arch:      linux/amd64

I tried for almost a day to find some solution, but nothing yet. I am not sure from where this client version 1.18 is taken. Any advises how to fix it?