diff --git a/install.sh b/install.sh
index 58382bff88..7053997a0e 100755
--- a/install.sh
+++ b/install.sh
@@ -237,6 +237,7 @@ VAR_DIRS="$VAR_LOCATION/remotes \
           $VAR_LOCATION/remotes/hooks/ft \
           $VAR_LOCATION/remotes/datastore \
           $VAR_LOCATION/remotes/datastore/fs \
+          $VAR_LOCATION/remotes/datastore/vmware \
           $VAR_LOCATION/remotes/auth \
           $VAR_LOCATION/remotes/auth/plain \
           $VAR_LOCATION/remotes/auth/ssh \
@@ -387,6 +388,7 @@ INSTALL_FILES=(
     LVM_TM_COMMANDS_LIB_FILES:$LIB_LOCATION/tm_commands/lvm
     DATASTORE_DRIVER_COMMON_SCRIPTS:$VAR_LOCATION/remotes/datastore/
     DATASTORE_DRIVER_FS_SCRIPTS:$VAR_LOCATION/remotes/datastore/fs
+    DATASTORE_DRIVER_VMWARE_SCRIPTS:$VAR_LOCATION/remotes/datastore/vmware
     NETWORK_FILES:$VAR_LOCATION/remotes/vnm
     NETWORK_8021Q_FILES:$VAR_LOCATION/remotes/vnm/802.1Q
     NETWORK_DUMMY_FILES:$VAR_LOCATION/remotes/vnm/dummy
@@ -526,6 +528,7 @@ INSTALL_ETC_FILES=(
     VMM_EC2_ETC_FILES:$ETC_LOCATION/vmm_ec2
     VMM_EXEC_ETC_FILES:$ETC_LOCATION/vmm_exec
     DATASTORE_DRIVER_FS_ETC_FILES:$ETC_LOCATION/datastore/
+    DATASTORE_DRIVER_VMWARE_ETC_FILES:$ETC_LOCATION/datastore/
     IM_EC2_ETC_FILES:$ETC_LOCATION/im_ec2
     TM_SHARED_ETC_FILES:$ETC_LOCATION/tm_shared
     TM_SSH_ETC_FILES:$ETC_LOCATION/tm_ssh
@@ -798,10 +801,13 @@ VMWARE_TM_COMMANDS_LIB_FILES="src/tm_mad/vmware/tm_clone.sh \
 #-------------------------------------------------------------------------------
 # Datastore drivers, to be installed under $REMOTES_LOCATION/datastore
 #   - FS based Image Repository, $REMOTES_LOCATION/datastore/fs
+#   - VMware based Image Repository, $REMOTES_LOCATION/datastore/vmware
 #-------------------------------------------------------------------------------
 
 DATASTORE_DRIVER_FS_ETC_FILES="src/datastore_mad/remotes/fs/fs.conf"
 
+DATASTORE_DRIVER_VMWARE_ETC_FILES="src/datastore_mad/remotes/vmware/vmware.conf"
+
 DATASTORE_DRIVER_COMMON_SCRIPTS="src/datastore_mad/remotes/xpath.rb \
                              src/datastore_mad/remotes/libfs.sh"
 
@@ -810,6 +816,11 @@ DATASTORE_DRIVER_FS_SCRIPTS="src/datastore_mad/remotes/fs/cp \
                          src/datastore_mad/remotes/fs/mv \
                          src/datastore_mad/remotes/fs/rm"
 
+DATASTORE_DRIVER_VMWARE_SCRIPTS="src/datastore_mad/remotes/vmware/cp \
+                         src/datastore_mad/remotes/vmware/mkfs \
+                         src/datastore_mad/remotes/vmware/mv \
+                         src/datastore_mad/remotes/vmware/rm"
+
 #-------------------------------------------------------------------------------
 # Migration scripts for onedb command, to be installed under $LIB_LOCATION
 #-------------------------------------------------------------------------------
diff --git a/share/etc/oned.conf b/share/etc/oned.conf
index 11165c0d6c..c75a729a38 100644
--- a/share/etc/oned.conf
+++ b/share/etc/oned.conf
@@ -350,7 +350,9 @@ TM_MAD = [
 
 DATASTORE_MAD = [
     executable = "one_datastore",
-    arguments  = "-t 15 -d fs" ]
+    arguments  = "-t 15 -d fs"
+#    arguments  = "-t 15 -d fs,vmware"
+]
 
 #*******************************************************************************
 # Hook Manager Configuration
diff --git a/src/datastore_mad/remotes/fs/cp b/src/datastore_mad/remotes/fs/cp
index 712381f0c2..73e5dafaa6 100755
--- a/src/datastore_mad/remotes/fs/cp
+++ b/src/datastore_mad/remotes/fs/cp
@@ -57,29 +57,6 @@ http://*)
     exec_and_log "chmod 0660 $DST"
     ;;
 
-vmware://*)
-    SRC=`echo $SRC|sed  's/vmware:\/\///g'`
-
-    if [ `check_restricted $SRC` -eq 1 ]; then
-        log_error "Not allowed to copy images from $RESTRICTED_DIRS"
-        error_message "Not allowed to copy image file $SRC"
-        exit -1
-    fi
-
-    log "Copying local disk folder $SRC to the image repository"
-
-    exec_and_log "cp -rf $SRC $DST" "Error copying $SRC to $DST"
-
-    if [ ! -f $DST/disk.vmdk ]; then
-        BASE_DISK_FILE=`ls $DST | grep -v '.*-s[0-9]*\.vmdk'`
-
-        exec_and_log "mv -f $DST/$BASE_DISK_FILE $DST/disk.vmdk" \
-            "Error renaming disk file $BASE_DISK_FILE to disk.vmdk"
-    fi
-
-    exec_and_log "chmod 0770 $DST"
-    ;;
-
 *)
     if [ `check_restricted $SRC` -eq 1 ]; then
         log_error "Not allowed to copy images from $RESTRICTED_DIRS"
diff --git a/src/datastore_mad/remotes/vmware/cp b/src/datastore_mad/remotes/vmware/cp
new file mode 100755
index 0000000000..c449d1b1ce
--- /dev/null
+++ b/src/datastore_mad/remotes/vmware/cp
@@ -0,0 +1,86 @@
+#!/bin/bash
+
+# -------------------------------------------------------------------------- #
+# Copyright 2002-2012, OpenNebula Project Leads (OpenNebula.org)             #
+#                                                                            #
+# Licensed under the Apache License, Version 2.0 (the "License"); you may    #
+# not use this file except in compliance with the License. You may obtain    #
+# a copy of the License at                                                   #
+#                                                                            #
+# http://www.apache.org/licenses/LICENSE-2.0                                 #
+#                                                                            #
+# Unless required by applicable law or agreed to in writing, software        #
+# distributed under the License is distributed on an "AS IS" BASIS,          #
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.   #
+# See the License for the specific language governing permissions and        #
+# limitations under the License.                                             #
+#--------------------------------------------------------------------------- #
+
+###############################################################################
+# This script is used to copy a VM image (SRC) to the image repository as DST
+# Several SRC types are supported
+###############################################################################
+
+# -------- Set up the environment to source common tools & conf ------------ 
+
+if [ -z "${ONE_LOCATION}" ]; then
+    LIB_LOCATION=/usr/lib/one
+else
+    LIB_LOCATION=$ONE_LOCATION/lib
+fi
+
+. $LIB_LOCATION/sh/scripts_common.sh
+
+DRIVER_PATH=$(dirname $0)
+source ${DRIVER_PATH}/../libfs.sh
+
+# -------- Get cp and datastore arguments from OpenNebula core ------------ 
+
+DRV_ACTION=$1
+ID=$2
+
+set_up_datastore $DRV_ACTION
+
+XPATH="${DRIVER_PATH}/../xpath.rb -b $DRV_ACTION"
+eval "SRC=`$XPATH /DS_DRIVER_ACTION_DATA/IMAGE/PATH`"
+
+DST=`generate_image_path`
+
+# ------------ Copy the image to the repository ------------- 
+
+case $SRC in
+http://*)
+    log "Downloading $SRC to the image repository"
+
+    exec_and_log "$WGET -O $DST $SRC" "Error downloading $SRC"
+
+    exec_and_log "chmod 0660 $DST"
+    ;;
+
+*)
+    if [ `check_restricted $SRC` -eq 1 ]; then
+        log_error "Not allowed to copy images from $RESTRICTED_DIRS"
+        error_message "Not allowed to copy image file $SRC"
+        exit -1
+    fi
+
+    log "Copying local disk folder $SRC to the image repository"
+
+    exec_and_log "cp -rf $SRC $DST" "Error copying $SRC to $DST"
+
+    if [ ! -f $DST/disk.vmdk ]; then
+        BASE_DISK_FILE=`ls $DST | grep -v '.*-s[0-9]*\.vmdk'`
+
+        exec_and_log "mv -f $DST/$BASE_DISK_FILE $DST/disk.vmdk" \
+            "Error renaming disk file $BASE_DISK_FILE to disk.vmdk"
+    fi
+
+    exec_and_log "chmod 0770 $DST"
+    ;;
+esac
+
+# ---------------- Get the size of the image ------------
+
+SIZE=`fs_du $DST`
+
+echo "$DST $SIZE"
diff --git a/src/datastore_mad/remotes/vmware/mkfs b/src/datastore_mad/remotes/vmware/mkfs
new file mode 100755
index 0000000000..a1dc19fb81
--- /dev/null
+++ b/src/datastore_mad/remotes/vmware/mkfs
@@ -0,0 +1,63 @@
+#!/bin/bash
+
+# -------------------------------------------------------------------------- #
+# Copyright 2002-2012, OpenNebula Project Leads (OpenNebula.org)             #
+#                                                                            #
+# Licensed under the Apache License, Version 2.0 (the "License"); you may    #
+# not use this file except in compliance with the License. You may obtain    #
+# a copy of the License at                                                   #
+#                                                                            #
+# http://www.apache.org/licenses/LICENSE-2.0                                 #
+#                                                                            #
+# Unless required by applicable law or agreed to in writing, software        #
+# distributed under the License is distributed on an "AS IS" BASIS,          #
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.   #
+# See the License for the specific language governing permissions and        #
+# limitations under the License.                                             #
+#--------------------------------------------------------------------------- #
+
+###############################################################################
+# This script is used to create a VM image (SRC) of size (SIZE) and formatted
+# as (FS)
+###############################################################################
+
+# -------- Set up the environment to source common tools & conf ------------ 
+
+if [ -z "${ONE_LOCATION}" ]; then
+    LIB_LOCATION=/usr/lib/one
+else
+    LIB_LOCATION=$ONE_LOCATION/lib
+fi
+
+. $LIB_LOCATION/sh/scripts_common.sh
+
+DRIVER_PATH=$(dirname $0)
+source ${DRIVER_PATH}/../libfs.sh
+
+# -------- Get mkfs and datastore arguments from OpenNebula core ------------ 
+
+DRV_ACTION=$1
+ID=$2
+
+set_up_datastore $DRV_ACTION
+
+XPATH="${DRIVER_PATH}/../xpath.rb -b $DRV_ACTION"
+eval "FSTYPE=`$XPATH /DS_DRIVER_ACTION_DATA/IMAGE/FSTYPE`"
+eval "SIZE=`$XPATH /DS_DRIVER_ACTION_DATA/IMAGE/SIZE`"
+
+DST=`generate_image_path`
+
+# ------------ Create the image to the repository ------------
+
+MKFS_CMD=`mkfs_command $DST $FSTYPE`
+
+exec_and_log "$DD if=/dev/zero of=$DST bs=1 count=1 seek=${SIZE}M" \
+    "Could not create image $DST"
+exec_and_log "$MKFS_CMD" \
+    "Unable to create filesystem $FSTYPE in $DST"
+exec_and_log "chmod 0660 $DST"
+
+# ---------------- Get the size of the image ------------
+SIZE=`fs_du $DST`
+
+echo "$DST $SIZE"
diff --git a/src/datastore_mad/remotes/vmware/mv b/src/datastore_mad/remotes/vmware/mv
new file mode 100755
index 0000000000..8ea2259a28
--- /dev/null
+++ b/src/datastore_mad/remotes/vmware/mv
@@ -0,0 +1,75 @@
+#!/bin/bash
+
+# -------------------------------------------------------------------------- #
+# Copyright 2002-2012, OpenNebula Project Leads (OpenNebula.org)             #
+#                                                                            #
+# Licensed under the Apache License, Version 2.0 (the "License"); you may    #
+# not use this file except in compliance with the License. You may obtain    #
+# a copy of the License at                                                   #
+#                                                                            #
+# http://www.apache.org/licenses/LICENSE-2.0                                 #
+#                                                                            #
+# Unless required by applicable law or agreed to in writing, software        #
+# distributed under the License is distributed on an "AS IS" BASIS,          #
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.   #
+# See the License for the specific language governing permissions and        #
+# limitations under the License.                                             #
+#--------------------------------------------------------------------------- #
+
+###############################################################################
+# This script is used to move a VM image (SRC) to the image repository as DST
+# Several SRC types are supported
+###############################################################################
+
+# ------------ Set up the environment to source common tools ------------ 
+
+if [ -z "${ONE_LOCATION}" ]; then
+    LIB_LOCATION=/usr/lib/one
+else
+    LIB_LOCATION=$ONE_LOCATION/lib
+fi
+
+. $LIB_LOCATION/sh/scripts_common.sh
+source $(dirname $0)/fsrc
+
+SRC=$1
+DST=$2
+ID=$3
+
+# ------------ Generate a filename for the image ------------
+
+if [ "$DST" = "-" ] ; then 
+    DST=`generate_image_path`
+fi
+
+# ------------ Move the image to the repository ------------ 
+
+case $SRC in
+http://*)
+    log "Downloading $SRC to the image repository"
+    exec_and_log "$WGET -O $DST $SRC" \
+        "Error downloading $SRC"
+    ;;
+
+*)
+    log "Moving local image $SRC to the image repository"
+ 
+    if [ \( -L $SRC \) -a \
+         \( "`$READLINK -f $SRC`" = "`$READLINK -f $DST`" \) ] ; then
+       log "Not moving files to image repo, they are the same"
+    else
+       exec_and_log "mv -f $SRC $DST" "Could not move $SRC to $DST"
+    fi
+    ;;
+esac
+
+if [ -d $DST ]; then
+    exec_and_log "chmod 0770 $DST"
+else
+    exec_and_log "chmod 0660 $DST"
+fi
+
+# ---------------- Get the size of the image ------------
+SIZE=`fs_du $DST`
+
+echo "$DST $SIZE"
diff --git a/src/datastore_mad/remotes/vmware/rm b/src/datastore_mad/remotes/vmware/rm
new file mode 100755
index 0000000000..d915786ea4
--- /dev/null
+++ b/src/datastore_mad/remotes/vmware/rm
@@ -0,0 +1,50 @@
+#!/bin/bash
+
+# -------------------------------------------------------------------------- #
+# Copyright 2002-2012, OpenNebula Project Leads (OpenNebula.org)             #
+#                                                                            #
+# Licensed under the Apache License, Version 2.0 (the "License"); you may    #
+# not use this file except in compliance with the License. You may obtain    #
+# a copy of the License at                                                   #
+#                                                                            #
+# http://www.apache.org/licenses/LICENSE-2.0                                 #
+#                                                                            #
+# Unless required by applicable law or agreed to in writing, software        #
+# distributed under the License is distributed on an "AS IS" BASIS,          #
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.   #
+# See the License for the specific language governing permissions and        #
+# limitations under the License.                                             #
+#--------------------------------------------------------------------------- #
+
+###############################################################################
+# This script is used to remove a VM image (SRC) from the image repository 
+###############################################################################
+
+# ------------ Set up the environment to source common tools ------------ 
+
+if [ -z "${ONE_LOCATION}" ]; then
+    LIB_LOCATION=/usr/lib/one
+else
+    LIB_LOCATION=$ONE_LOCATION/lib
+fi
+
+. $LIB_LOCATION/sh/scripts_common.sh
+
+DRIVER_PATH=$(dirname $0)
+source ${DRIVER_PATH}/../libfs.sh
+
+# -------- Get rm and datastore arguments from OpenNebula core ------------ 
+
+DRV_ACTION=$1
+ID=$2
+
+XPATH="${DRIVER_PATH}/../xpath.rb -b $DRV_ACTION"
+eval "SRC=`$XPATH /DS_DRIVER_ACTION_DATA/IMAGE/SOURCE`"
+
+# ------------ Remove the image from the repository ------------ 
+
+if [ -e $SRC ] ; then
+    log "Removing $SRC from the image repository"
+    exec_and_log "rm -r $SRC" \
+        "Error deleting $SRC"
+fi
diff --git a/src/datastore_mad/remotes/vmware/vmware.conf b/src/datastore_mad/remotes/vmware/vmware.conf
new file mode 100644
index 0000000000..ec29989e22
--- /dev/null
+++ b/src/datastore_mad/remotes/vmware/vmware.conf
@@ -0,0 +1,38 @@
+# -------------------------------------------------------------------------- #
+# Copyright 2002-2012, OpenNebula Project Leads (OpenNebula.org)             #
+#                                                                            #
+# Licensed under the Apache License, Version 2.0 (the "License"); you may    #
+# not use this file except in compliance with the License. You may obtain    #
+# a copy of the License at                                                   #
+#                                                                            #
+# http://www.apache.org/licenses/LICENSE-2.0                                 #
+#                                                                            #
+# Unless required by applicable law or agreed to in writing, software        #
+# distributed under the License is distributed on an "AS IS" BASIS,          #
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.   #
+# See the License for the specific language governing permissions and        #
+# limitations under the License.                                             #
+#--------------------------------------------------------------------------- #
+
+#                          PRESERVE BASH SYNTAX
+
+#*******************************************************************************
+#  DEFAULT Configuration File for File-System based Datastores
+#-------------------------------------------------------------------------------
+#  BASE_PATH: Path where the images will be stored. If not defined 
+#  defaults to /var/lib/one/images or $ONE_LOCATION/var/images
+#
+#  RESTRICTED_DIRS: Paths that can not be used to register images. A space 
+#  separated list of paths. This prevents users to access important files like
+#  oned.db or /etc/shadow. OpenNebula will automatically add its configuration 
+#  dirs:/var/lib/one, /etc/one and oneadmin's home ($HOME).
+#
+#  SAFE_DIRS: Paths that are safe to specify image paths. A space separated list
+#  of paths.This will allow you to open specific paths within RESTRICTED_DIRS
+#*******************************************************************************
+
+#BASE_PATH=/var/lib/one/images
+
+RESTRICTED_DIRS="/etc/"
+
+SAFE_DIRS="$HOME/public/"