Gen 1:27 says God made humanity in His image

And God created humankind in His own image, in the image of God He created him; male and female He created them (Gen 1:27).

However we read in Gen 3:22

Then the LORD God said, Behold, the humans have become like one of Us, knowing good and evil; and now, lest they stretch out their hand, and take also from the tree of life, and eat, and live forever (Gen 3:22).

Are these two passages contradictory? How can humanity, part of the creation and not the Creator, be like God?

Before and After Fall

These passages speak of two things: Gen 1 refers to Adam and Eve before the Fall while Gen 3 speaks of humankind after the Fall.

Nature and State

The first passage has to do with their nature, the second passage with their state. When they were created, Adam and Eve had no knowledge of evil, only good. After the Fall they became like God in the sense they knew both good and evil. Gen 1, therefore, refers to their created state—perfection, while Gen 3 speaks of their fallen state—knowing good and evil.