diff --git a/cmd/aergoluac/main.go b/cmd/aergoluac/main.go
index d305fd093..1c4c120b3 100644
--- a/cmd/aergoluac/main.go
+++ b/cmd/aergoluac/main.go
@@ -17,6 +17,7 @@ var (
 	rootCmd *cobra.Command
 	abiFile string
 	payload bool
+	decode  bool
 	version bool
 )
 
@@ -24,7 +25,7 @@ var githash = "No git hash provided"
 
 func init() {
 	rootCmd = &cobra.Command{
-		Use:   "aergoluac --payload srcfile\n  aergoluac --abi abifile srcfile bcfile",
+		Use:   "aergoluac --payload srcfile\n  aergoluac srcfile bcfile\n  aergoluac --abi abifile srcfile bcfile\n  aergoluac --decode payloadfile",
 		Short: "Compile a lua contract",
 		Long:  "Compile a lua contract. This command makes a bytecode file and a ABI file or prints a payload data.",
 		RunE: func(cmd *cobra.Command, args []string) error {
@@ -34,7 +35,14 @@ func init() {
 				cmd.Printf("Aergoluac %s\n", githash)
 				return nil
 			}
-			if payload {
+
+			if decode {
+				if len(args) == 0 {
+					err = util.DecodeFromStdin()
+				} else {
+					err = util.DecodeFromFile(args[0])
+				}
+			} else if payload {
 				if len(args) == 0 {
 					err = util.DumpFromStdin()
 				} else {
@@ -46,11 +54,13 @@ func init() {
 				}
 				err = util.CompileFromFile(args[0], args[1], abiFile)
 			}
+
 			return err
 		},
 	}
 	rootCmd.PersistentFlags().StringVarP(&abiFile, "abi", "a", "", "abi filename")
 	rootCmd.PersistentFlags().BoolVar(&payload, "payload", false, "print the compilation result consisting of bytecode and abi")
+	rootCmd.PersistentFlags().BoolVar(&decode, "decode", false, "extract raw bytecode and abi from payload (hex or base58)")
 	rootCmd.PersistentFlags().BoolVar(&version, "version", false, "print the version number of aergoluac")
 }
 
diff --git a/cmd/aergoluac/util/luac_util.go b/cmd/aergoluac/util/luac_util.go
index 20b038260..8fc03ab01 100644
--- a/cmd/aergoluac/util/luac_util.go
+++ b/cmd/aergoluac/util/luac_util.go
@@ -20,6 +20,8 @@ import (
 	"runtime"
 	"unsafe"
 
+	"github.com/aergoio/aergo/v2/internal/enc/hex"
+	"github.com/aergoio/aergo/v2/internal/enc/base58"
 	"github.com/aergoio/aergo/v2/cmd/aergoluac/encoding"
 )
 
@@ -130,6 +132,112 @@ func dumpToBytes(L *C.lua_State) LuaCode {
 	return NewLuaCode(C.GoBytes(unsafe.Pointer(c), C.int(lc)), C.GoBytes(unsafe.Pointer(a), C.int(la)))
 }
 
+func isHexString(s string) bool {
+	// check is the input has even number of characters
+	if len(s)%2 != 0 {
+		return false
+	}
+	// check if the input contains only hex characters
+	for _, c := range s {
+		if !((c >= '0' && c <= '9') || (c >= 'a' && c <= 'f') || (c >= 'A' && c <= 'F')) {
+			return false
+		}
+	}
+	return true
+}
+
+func Decode(srcFileName string, payload string) error {
+
+	var decoded []byte
+	var err error
+
+	// check if the payload is in hex format
+	if isHexString(payload) {
+		// the data is expected to be copied from aergoscan view of
+		// the transaction that deployed the contract
+		decoded, err = hex.Decode(payload)
+	} else {
+		// the data is the output of aergoluac
+		decoded, err = encoding.DecodeCode(payload)
+		if err != nil {
+			// the data is extracted from JSON transaction from aergocli
+			decoded, err = base58.Decode(payload)
+		}
+	}
+	if err != nil {
+		return fmt.Errorf("failed to decode payload 1: %v", err.Error())
+	}
+
+	data := LuaCodePayload(decoded)
+	_, err = data.IsValidFormat()
+	if err != nil {
+		return fmt.Errorf("failed to decode payload 2: %v", err.Error())
+	}
+
+	contract := data.Code()
+	if !contract.IsValidFormat() {
+		// the data is the output of aergoluac, so it does not contain deploy arguments
+		contract = LuaCode(decoded)
+		data = NewLuaCodePayload(contract, []byte{})
+	}
+
+	err = os.WriteFile(srcFileName + "-bytecode", contract.ByteCode(), 0644);
+	if err != nil {
+		return fmt.Errorf("failed to write bytecode file: %v", err.Error())
+	}
+
+	err = os.WriteFile(srcFileName + "-abi", contract.ABI(), 0644);
+	if err != nil {
+		return fmt.Errorf("failed to write ABI file: %v", err.Error())
+	}
+
+	var deployArgs []byte
+	if data.HasArgs() {
+		deployArgs = data.Args()
+	}
+	err = os.WriteFile(srcFileName + "-deploy-arguments", deployArgs, 0644);
+	if err != nil {
+		return fmt.Errorf("failed to write deploy-arguments file: %v", err.Error())
+	}
+
+	fmt.Println("done.")
+	return nil
+}
+
+func DecodeFromFile(srcFileName string) error {
+	payload, err := os.ReadFile(srcFileName)
+	if err != nil {
+		return fmt.Errorf("failed to read payload file: %v", err.Error())
+	}
+	return Decode(srcFileName, string(payload))
+}
+
+func DecodeFromStdin() error {
+	fi, err := os.Stdin.Stat()
+	if err != nil {
+		return err
+	}
+	var buf []byte
+	if (fi.Mode() & os.ModeCharDevice) == 0 {
+		buf, err = ioutil.ReadAll(os.Stdin)
+		if err != nil {
+			return err
+		}
+	} else {
+		var bBuf bytes.Buffer
+		scanner := bufio.NewScanner(os.Stdin)
+		for scanner.Scan() {
+			bBuf.WriteString(scanner.Text() + "\n")
+		}
+		if err = scanner.Err(); err != nil {
+			return err
+		}
+		buf = bBuf.Bytes()
+	}
+	return Decode("contract", string(buf))
+}
+
+
 type LuaCode []byte
 
 const byteCodeLenLen = 4