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Newcastle's Mitchell Pearce has been putting a lot of thought into how he will use the captain's challenge during the 2020 NRL season.

Newcastle star Mitchell Pearce says the captain's challenge can be a valuable tactic for NRL clubs if used at the right time in games.

Earlier this month, the Australian Rugby League Commission (ARLC) approved the concept to be used in 2020, meaning NRL captains on the field will now be able to challenge a referee's decisions in a set of situations using the game's existing video referee system.

Each team will get one unsuccessful challenge per game, and will have 10 seconds to alert the referee that they wish to contest a decision.

The only decisions that can be challenged are those involving a structured restart of play, such as a penalty or scrum.

Halfback Pearce, who is heading into his 14th NRL season, said he aims to be one of the best captains at using the new rule.

"I'm really excited about it," the Knights skipper told the Big Sports Breakfast.

"I've been putting a little bit of thought into it.

"I think there's a bit of a golden egg there if you can pick the right moment.

"You know, if you're four-nil down with 10 minutes to go and you get a penalty, you can argue the point, win some momentum and get the golden egg, that will be the positive out of it."

Pearce reflected on how Canberra could have used their captain's challenge during their controversial 2019 grand final loss to the Sydney Roosters.

"Similar to the grand final last year where Canberra had of used it early and could have almost missed the opportunity to argue that controversial call late in the game," Pearce said.

"I've been thinking about it a fair bit and talking to coach a little bit about it.

"I want to be one of the better ones to use that and it's something that will benefit our team."

The Knights enter the campaign with the longest grand final drought in the NRL, last making the decider when they won the title in 2001.