Finnegan will start Saturday when Omaha plays at Albuquerque, and he will be on a 60-pitch limit for his first two starts.
The Royals believe Finnegan's arm slot has dropped and that if he starts working out of the windup again as a starter, he could return to form.
"He hasn't thrown from the windup since last July," Picollo said. "We'd like him to get his arm slot back, be a little higher, and that could help his command. We want him to be an option as a starter. But also, we can still use him in the bullpen if [manager] Ned [Yost] needs him."
In other news, right-hander Kyle Zimmer, overcoming shoulder stiffness, has been sent to Class A Lexington and will be used out of the bullpen to build up his arm strength.
Jeffrey Flanagan is a reporter for MLB.com. Follow him on Twitter at @FlannyMLB. This story was not subject to the approval of Major League Baseball or its clubs.