You should be able to disable the update entirely.
Open the app, click "Recommended Advanced Mode". Then hit menu>Settings and enable "Show system entries". Hit back button and find the Google Services Framework and click on that. Then below that look for the one that says com.google.android.gsf.update.SystemUpdateService$Receiver and uncheck it. Then just back button out and reboot phone.
Edit - if the update has already been downloaded, you may need to clear the cache to rid yourself of the notification as well
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