diff --git a/pallets/collator-selection/src/lib.rs b/pallets/collator-selection/src/lib.rs
index d0c1308fa..79f17bbc1 100644
--- a/pallets/collator-selection/src/lib.rs
+++ b/pallets/collator-selection/src/lib.rs
@@ -219,7 +219,7 @@ pub mod pallet {
 
     /// Destination account for slashed amount.
     #[pallet::storage]
-    pub type SlashDestination<T> = StorageValue<_, <T as frame_system::Config>::AccountId>;
+    pub type SlashDestination<T: Config> = StorageValue<_, T::AccountId, OptionQuery>;
 
     #[pallet::genesis_config]
     #[derive(DefaultNoBound)]
@@ -480,6 +480,22 @@ pub mod pallet {
 
             Ok(())
         }
+
+        /// Set slash destination.
+        /// Use `Some` to deposit slashed balance into destination or `None` to burn it.
+        #[pallet::call_index(6)]
+        #[pallet::weight(T::DbWeight::get().reads_writes(1, 1))]
+        pub fn set_slash_destination(
+            origin: OriginFor<T>,
+            destination: Option<T::AccountId>,
+        ) -> DispatchResult {
+            T::UpdateOrigin::ensure_origin(origin)?;
+            match destination {
+                Some(account) => <SlashDestination<T>>::put(account),
+                None => <SlashDestination<T>>::kill(),
+            }
+            Ok(())
+        }
     }
 
     impl<T: Config> Pallet<T> {
diff --git a/pallets/collator-selection/src/tests.rs b/pallets/collator-selection/src/tests.rs
index d38050660..17299bf42 100644
--- a/pallets/collator-selection/src/tests.rs
+++ b/pallets/collator-selection/src/tests.rs
@@ -18,7 +18,7 @@
 use crate as collator_selection;
 use crate::{
     mock::*, CandidacyBond, CandidateInfo, Candidates, DesiredCandidates, Error, Invulnerables,
-    LastAuthoredBlock, NonCandidates,
+    LastAuthoredBlock, NonCandidates, SlashDestination,
 };
 use frame_support::{
     assert_noop, assert_ok,
@@ -628,3 +628,30 @@ fn cannot_set_genesis_value_twice() {
     // collator selection must be initialized before session.
     collator_selection.assimilate_storage(&mut t).unwrap();
 }
+
+#[test]
+fn set_slash_destination() {
+    new_test_ext().execute_with(|| {
+        assert_eq!(SlashDestination::<Test>::get(), None);
+
+        // only UpdateOrigin can update
+        assert_noop!(
+            CollatorSelection::set_slash_destination(RuntimeOrigin::signed(1), Some(1)),
+            sp_runtime::DispatchError::BadOrigin
+        );
+
+        // set destination
+        assert_ok!(CollatorSelection::set_slash_destination(
+            RuntimeOrigin::signed(RootAccount::get()),
+            Some(1),
+        ));
+        assert_eq!(SlashDestination::<Test>::get(), Some(1));
+
+        // remove destination
+        assert_ok!(CollatorSelection::set_slash_destination(
+            RuntimeOrigin::signed(RootAccount::get()),
+            None,
+        ));
+        assert_eq!(SlashDestination::<Test>::get(), None);
+    });
+}