diff --git a/core/contracts/shared/IReceiveApproval.sol b/core/contracts/shared/IReceiveApproval.sol
new file mode 100644
index 000000000..175e32eb8
--- /dev/null
+++ b/core/contracts/shared/IReceiveApproval.sol
@@ -0,0 +1,16 @@
+// SPDX-License-Identifier: GPL-3.0-only
+
+pragma solidity ^0.8.20;
+
+/// @notice An interface that should be implemented by contracts supporting
+///         `approveAndCall`/`receiveApproval` pattern.
+interface IReceiveApproval {
+    /// @notice Receives approval to spend tokens. Called as a result of
+    ///         `approveAndCall` call on the token.
+    function receiveApproval(
+        address from,
+        uint256 amount,
+        address token,
+        bytes calldata extraData
+    ) external;
+}
diff --git a/core/contracts/staking/TokenStaking.sol b/core/contracts/staking/TokenStaking.sol
index d1b9d2ccd..a9051040d 100644
--- a/core/contracts/staking/TokenStaking.sol
+++ b/core/contracts/staking/TokenStaking.sol
@@ -4,12 +4,13 @@ pragma solidity ^0.8.20;
 
 import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
 import "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";
+import "../shared/IReceiveApproval.sol";
 
 /// @title TokenStaking
 /// @notice A token staking contract for a specified standard ERC20 token. A
 ///         holder of the specified token can stake its tokens to this contract
 ///         and recover the stake after undelegation period is over.
-contract TokenStaking {
+contract TokenStaking is IReceiveApproval {
     using SafeERC20 for IERC20;
 
     event Staked(address indexed account, uint256 amount);
@@ -27,14 +28,36 @@ contract TokenStaking {
         token = _token;
     }
 
+    /// @notice Receives approval of token transfer and stakes the approved
+    ///         amount or adds the approved amount to an existing stake.
+    /// @dev Requires that the provided token contract be the same one linked to
+    ///      this contract.
+    /// @param from The owner of the tokens who approved them to transfer.
+    /// @param amount Approved amount for the transfer and stake.
+    /// @param _token Token contract address.
+    function receiveApproval(
+        address from,
+        uint256 amount,
+        address _token,
+        bytes calldata
+    ) external override {
+        require(_token == address(token), "Unrecognized token");
+        _stake(from, amount);
+    }
+
     /// @notice Stakes the owner's tokens in the staking contract.
     /// @param amount Approved amount for the transfer and stake.
     function stake(uint256 amount) external {
+        _stake(msg.sender, amount);
+    }
+
+    function _stake(address account, uint256 amount) private {
         require(amount > 0, "Amount is less than minimum");
+        require(account != address(0), "Can not be the zero address");
 
-        balanceOf[msg.sender] += amount;
+        balanceOf[account] += amount;
 
-        emit Staked(msg.sender, amount);
-        token.safeTransferFrom(msg.sender, address(this), amount);
+        emit Staked(account, amount);
+        token.safeTransferFrom(account, address(this), amount);
     }
 }
diff --git a/core/contracts/test/TestToken.sol b/core/contracts/test/TestToken.sol
index 749165b4c..c061cf278 100644
--- a/core/contracts/test/TestToken.sol
+++ b/core/contracts/test/TestToken.sol
@@ -3,6 +3,8 @@
 pragma solidity 0.8.20;
 
 import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
+import "../shared/IReceiveApproval.sol";
+
 
 contract Token is ERC20 {
     constructor() ERC20("Test Token", "TEST") {}
@@ -10,4 +12,21 @@ contract Token is ERC20 {
     function mint(address account, uint256 value) external {
         _mint(account, value);
     }
+
+    function approveAndCall(
+        address spender,
+        uint256 amount,
+        bytes memory extraData
+    ) external returns (bool) {
+        if (approve(spender, amount)) {
+            IReceiveApproval(spender).receiveApproval(
+                msg.sender,
+                amount,
+                address(this),
+                extraData
+            );
+            return true;
+        }
+        return false;
+    }
 }
diff --git a/core/test/staking/TokenStaking.test.ts b/core/test/staking/TokenStaking.test.ts
index fb2e8655a..076313950 100644
--- a/core/test/staking/TokenStaking.test.ts
+++ b/core/test/staking/TokenStaking.test.ts
@@ -4,7 +4,6 @@ import { expect } from "chai"
 import { Token, TokenStaking } from "../../typechain"
 import { WeiPerEther } from "ethers"
 import { HardhatEthersSigner } from "@nomicfoundation/hardhat-ethers/signers"
-import { before } from "mocha"
 
 async function tokenStakingFixture() {
   const [deployer, tokenHolder] = await ethers.getSigners()
@@ -39,29 +38,52 @@ describe("TokenStaking", () => {
   })
 
   describe("staking", () => {
-    beforeEach(async () => {
-      // Infinite approval for staking contract.
-      await token
-        .connect(tokenHolder)
-        .approve(await tokenStaking.getAddress(), ethers.MaxUint256)
-    })
+    describe("when staking via staking contract directly", () => {
+      beforeEach(async () => {
+        // Infinite approval for staking contract.
+        await token
+          .connect(tokenHolder)
+          .approve(await tokenStaking.getAddress(), ethers.MaxUint256)
+      })
+
+      it("should stake tokens", async () => {
+        const tokenHolderAddress = await tokenHolder.getAddress()
+        const tokenBalance = await token.balanceOf(tokenHolderAddress)
 
-    it("should stake tokens", async () => {
-      const tokenHolderAddress = await tokenHolder.getAddress()
-      const tokenBalance = await token.balanceOf(tokenHolderAddress)
+        await expect(tokenStaking.connect(tokenHolder).stake(tokenBalance))
+          .to.emit(tokenStaking, "Staked")
+          .withArgs(tokenHolderAddress, tokenBalance)
+        expect(await tokenStaking.balanceOf(tokenHolderAddress)).to.be.eq(
+          tokenBalance,
+        )
+        expect(await token.balanceOf(tokenHolderAddress)).to.be.eq(0)
+      })
 
-      await expect(tokenStaking.connect(tokenHolder).stake(tokenBalance))
-        .to.emit(tokenStaking, "Staked")
-        .withArgs(tokenHolderAddress, tokenBalance)
-      expect(await tokenStaking.balanceOf(tokenHolderAddress)).to.be.eq(
-        tokenBalance,
-      )
-      expect(await token.balanceOf(tokenHolderAddress)).to.be.eq(0)
+      it("should revert if the staked amount is less than required minimum", async () => {
+        await expect(
+          tokenStaking.connect(tokenHolder).stake(0),
+        ).to.be.revertedWith("Amount is less than minimum")
+      })
     })
 
-    it("should revert if the staked amount is less than required minimum", async () => {
-        await expect(tokenStaking.connect(tokenHolder).stake(0))
-        .to.be.revertedWith("Amount is less than minimum")
+    describe("when staking via staking token using approve and call pattern", () => {
+      it("should stake tokens", async () => {
+        const tokenHolderAddress = await tokenHolder.getAddress()
+        const tokenBalance = await token.balanceOf(tokenHolderAddress)
+        const tokenStakingAddress = await tokenStaking.getAddress()
+
+        await expect(
+          token
+            .connect(tokenHolder)
+            .approveAndCall(tokenStakingAddress, tokenBalance, "0x"),
+        )
+          .to.emit(tokenStaking, "Staked")
+          .withArgs(tokenHolderAddress, tokenBalance)
+        expect(await tokenStaking.balanceOf(tokenHolderAddress)).to.be.eq(
+          tokenBalance,
+        )
+        expect(await token.balanceOf(tokenHolderAddress)).to.be.eq(0)
+      })
     })
   })
 })