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Blake Green will stay with Newcastle in 2021 after Canterbury opted not to keep the injured five-eighth on their NRL books for next season.

Veteran Blake Green will stay in Newcastle for the 2021 season rather than head to Canterbury to take up his one-year deal with the NRL club.

The injured playmaker had signed with the Bulldogs in August, just before suffering a ruptured ACL that will see him miss the start of next season.

Canterbury have since signed released half Kyle Flanagan, making the 22-year-old former Sydney Roosters No.7 their playmaker of the future.

It opened the door for the Knights to keep 34-year-old Green, who only arrived in Newcastle in July after being released from the Warriors.

"Blake was massively influential in the short time he spent with us during 2020 and we could not be happier to welcome him back again for 2021," Knights coach Adam O'Brien said.

"His experience is invaluable, he is a natural leader with a brilliant rugby league brain, adding key ingredients to complement our existing roster.

"He will continue to play that role with our young halves and his combination with Mitchell Pearce will only continue to grow."

Despite his chaotic end to 2020, Green remains a valuable pick up for Newcastle.

He has played 175 NRL games, won a premiership playing five-eighth for Melbourne in 2016 and helped put Manly and the Warriors in the finals in his first season at each club.

Green was the ideal foil for Mitchell Pearce in his three games for three wins at Newcastle this year, before his season was ended prematurely.