Evolving to God's Image?

Which is the correct interpretation of Gen 1:26 - "Let us make/create man in our image" or "Let us evolve this goo so that it will eventually come to our image"? If the later, does evolution make us "better" and more God-like? Have we arrived there yet? Do we finally just evolve into pure immaterial soul and out of time into eternity? I think the jury has already condemned us.