diff --git a/multiversx_sdk_cli/cli_delegation.py b/multiversx_sdk_cli/cli_delegation.py
index feecd36d..255d1735 100644
--- a/multiversx_sdk_cli/cli_delegation.py
+++ b/multiversx_sdk_cli/cli_delegation.py
@@ -131,6 +131,15 @@ def setup_parser(args: List[str], subparsers: Any) -> Any:
     _add_common_arguments(args, sub)
     sub.set_defaults(func=set_metadata)
 
+    # convert validator to delegation contract
+    sub = cli_shared.add_command_subparser(subparsers, "staking-provider", "make-delegation-contract-from-validator",
+                                           "Create a delegation contract from validator data. Must be called by the node operator")
+
+    sub.add_argument("--max-cap", required=True, help="total delegation cap in EGLD, fully denominated. Use value 0 for uncapped")
+    sub.add_argument("--fee", required=True, help=f"service fee as hundredths of percents. (e.g.  a service fee of 37.45 percent is expressed by the integer 3745)")
+    _add_common_arguments(args, sub)
+    sub.set_defaults(func=make_new_contract_from_validator_data)
+
 
 def _add_common_arguments(args: List[str], sub: Any):
     cli_shared.add_proxy_arg(sub)
@@ -334,3 +343,17 @@ def set_metadata(args: Any):
 
     tx = delegation.prepare_transaction_for_setting_metadata(sender, args)
     cli_shared.send_or_simulate(tx, args)
+
+
+def make_new_contract_from_validator_data(args: Any):
+    cli_shared.check_guardian_and_options_args(args)
+    cli_shared.check_broadcast_args(args)
+    cli_shared.prepare_chain_id_in_args(args)
+    cli_shared.prepare_nonce_in_args(args)
+
+    sender = cli_shared.prepare_account(args)
+    config = TransactionsFactoryConfig(args.chain)
+    delegation = DelegationOperations(config)
+
+    tx = delegation.prepare_transaction_for_creating_delegation_contract_from_validator(sender, args)
+    cli_shared.send_or_simulate(tx, args)
diff --git a/multiversx_sdk_cli/delegation/staking_provider.py b/multiversx_sdk_cli/delegation/staking_provider.py
index e8244ea0..beda7759 100644
--- a/multiversx_sdk_cli/delegation/staking_provider.py
+++ b/multiversx_sdk_cli/delegation/staking_provider.py
@@ -2,7 +2,8 @@
 from typing import Any, List, Protocol, Tuple
 
 from multiversx_sdk import (Address, DelegationTransactionsFactory,
-                            ValidatorPublicKey)
+                            Transaction, ValidatorPublicKey)
+from multiversx_sdk.core.serializer import args_to_string
 
 from multiversx_sdk_cli.errors import BadUsage
 from multiversx_sdk_cli.interfaces import IAddress, ITransaction
@@ -307,6 +308,31 @@ def prepare_transaction_for_setting_metadata(self, owner: IAccount, args: Any) -
 
         return tx
 
+    def prepare_transaction_for_creating_delegation_contract_from_validator(self, owner: IAccount, args: Any) -> ITransaction:
+        receiver = "erd1qqqqqqqqqqqqqqqpqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqylllslmq6y6"
+        max_cap = int(args.max_cap)
+        fee = int(args.fee)
+        data = "makeNewContractFromValidatorData@" + args_to_string([max_cap, fee])
+
+        tx = Transaction(
+            sender=owner.address.to_bech32(),
+            receiver=receiver,
+            gas_limit=510000000,
+            chain_id=self._factory.config.chain_id,
+            data=data.encode(),
+            nonce=int(args.nonce),
+            version=int(args.version),
+            options=int(args.options),
+            guardian=args.guardian
+        )
+
+        if args.gas_limit:
+            tx.gas_limit = int(args.gas_limit)
+
+        tx.signature = bytes.fromhex(owner.sign_transaction(tx))
+
+        return tx
+
     def _load_validators_public_keys(self, args: Any) -> List[ValidatorPublicKey]:
         if args.bls_keys:
             return self._parse_public_bls_keys(args.bls_keys)
diff --git a/multiversx_sdk_cli/tests/test_cli_staking_provider.py b/multiversx_sdk_cli/tests/test_cli_staking_provider.py
index 51cb7687..c1eb03a1 100644
--- a/multiversx_sdk_cli/tests/test_cli_staking_provider.py
+++ b/multiversx_sdk_cli/tests/test_cli_staking_provider.py
@@ -374,6 +374,25 @@ def test_set_metadata(capsys: Any):
     assert transaction["gasLimit"] == 11131000
 
 
+def test_create_delegation_contract_from_validator(capsys: Any):
+    main([
+        "staking-provider", "make-delegation-contract-from-validator",
+        "--max-cap", "0",
+        "--fee", "3745",
+        "--pem", str(alice),
+        "--nonce", "7", "--estimate-gas",
+        "--chain", "T"
+    ])
+    tx = get_transaction(capsys)
+    data = tx["emittedTransactionData"]
+    transaction = tx["emittedTransaction"]
+
+    assert data == "makeNewContractFromValidatorData@@0ea1"
+    assert transaction["sender"] == "erd1qyu5wthldzr8wx5c9ucg8kjagg0jfs53s8nr3zpz3hypefsdd8ssycr6th"
+    assert transaction["receiver"] == "erd1qqqqqqqqqqqqqqqpqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqylllslmq6y6"
+    assert transaction["gasLimit"] == 510000000
+
+
 def _read_stdout(capsys: Any) -> str:
     return capsys.readouterr().out.strip()