diff --git a/install.sh b/install.sh
index 6c9907c2fd..0f9a450e15 100755
--- a/install.sh
+++ b/install.sh
@@ -262,6 +262,7 @@ VAR_DIRS="$VAR_LOCATION/remotes \
           $VAR_LOCATION/remotes/vmm/az \
           $VAR_LOCATION/remotes/vnm \
           $VAR_LOCATION/remotes/vnm/802.1Q \
+          $VAR_LOCATION/remotes/vnm/vxlan \
           $VAR_LOCATION/remotes/vnm/dummy \
           $VAR_LOCATION/remotes/vnm/ebtables \
           $VAR_LOCATION/remotes/vnm/fw \
@@ -449,6 +450,7 @@ INSTALL_FILES=(
     DATASTORE_DRIVER_DEV_SCRIPTS:$VAR_LOCATION/remotes/datastore/dev
     NETWORK_FILES:$VAR_LOCATION/remotes/vnm
     NETWORK_8021Q_FILES:$VAR_LOCATION/remotes/vnm/802.1Q
+    NETWORK_VXLAN_FILES:$VAR_LOCATION/remotes/vnm/vxlan
     NETWORK_DUMMY_FILES:$VAR_LOCATION/remotes/vnm/dummy
     NETWORK_EBTABLES_FILES:$VAR_LOCATION/remotes/vnm/ebtables
     NETWORK_FW_FILES:$VAR_LOCATION/remotes/vnm/fw
@@ -940,6 +942,7 @@ NETWORK_FILES="src/vnm_mad/remotes/lib/vnm_driver.rb \
                src/vnm_mad/remotes/lib/address.rb \
                src/vnm_mad/remotes/lib/command.rb \
                src/vnm_mad/remotes/lib/vm.rb \
+               src/vnm_mad/remotes/lib/vlan.rb \
                src/vnm_mad/remotes/lib/security_groups.rb \
                src/vnm_mad/remotes/lib/security_groups_iptables.rb \
                src/vnm_mad/remotes/lib/nic.rb"
@@ -947,7 +950,13 @@ NETWORK_FILES="src/vnm_mad/remotes/lib/vnm_driver.rb \
 NETWORK_8021Q_FILES="src/vnm_mad/remotes/802.1Q/clean \
                     src/vnm_mad/remotes/802.1Q/post \
                     src/vnm_mad/remotes/802.1Q/pre \
-                    src/vnm_mad/remotes/802.1Q/vlan_driver.rb"
+                    src/vnm_mad/remotes/802.1Q/vlan_tag_driver.rb"
+
+NETWORK_VXLAN_FILES="src/vnm_mad/remotes/vxlan/clean \
+                    src/vnm_mad/remotes/vxlan/post \
+                    src/vnm_mad/remotes/vxlan/pre \
+                    src/vnm_mad/remotes/vxlan/vxlan_driver.rb"
+
 
 NETWORK_DUMMY_FILES="src/vnm_mad/remotes/dummy/clean \
                     src/vnm_mad/remotes/dummy/post \
diff --git a/src/vnm_mad/remotes/802.1Q/pre b/src/vnm_mad/remotes/802.1Q/pre
index 656fca6415..1dd5d1d12d 100755
--- a/src/vnm_mad/remotes/802.1Q/pre
+++ b/src/vnm_mad/remotes/802.1Q/pre
@@ -19,7 +19,7 @@
 $: << File.dirname(__FILE__)
 $: << File.join(File.dirname(__FILE__), "..")
 
-require 'vlan_driver'
+require 'vlan_tag_driver'
 
-hm = VLANDriver.from_base64(ARGV[0])
+hm = VLANTagDriver.from_base64(ARGV[0])
 exit hm.activate
diff --git a/src/vnm_mad/remotes/802.1Q/vlan_driver.rb b/src/vnm_mad/remotes/802.1Q/vlan_driver.rb
deleted file mode 100644
index f3dcf5dabc..0000000000
--- a/src/vnm_mad/remotes/802.1Q/vlan_driver.rb
+++ /dev/null
@@ -1,130 +0,0 @@
-# -------------------------------------------------------------------------- #
-# Copyright 2002-2014, OpenNebula Project (OpenNebula.org), C12G Labs        #
-#                                                                            #
-# 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.                                             #
-#--------------------------------------------------------------------------- #
-
-require 'vnmmad'
-
-################################################################################
-# This driver tag VM traffic with a VLAN_ID using 802.1Q protocol. Features:
-#   - Creates a bridge and bind phisycal device if not present
-#   - Creates a tagged interface for the VM dev.vlan_id
-#
-# Once activated the VM will be attached to this bridge 
-################################################################################
-class VLANDriver < VNMMAD::VNMDriver
-
-    # DRIVER name and XPATH for relevant NICs
-    DRIVER       = "802.1Q"
-    XPATH_FILTER = "TEMPLATE/NIC[VLAN='YES']"
-
-    ############################################################################
-    # Creatges the driver device operations are not locked
-    ############################################################################
-    def initialize(vm, deploy_id = nil, hypervisor = nil)
-        super(vm, XPATH_FILTER, deploy_id, hypervisor)
-        @locking = false
-
-        lock
-        @bridges = get_interfaces
-        unlock
-    end
-
-    ############################################################################
-    # Activate the driver and creates bridges and tags devices as needed.
-    ############################################################################
-    def activate
-        lock
-
-        vm_id =  @vm['ID']
-
-        process do |nic|
-            bridge  = nic[:bridge]
-            dev     = nic[:phydev]
-
-            if dev
-                if nic[:vlan_id]
-                    vlan = nic[:vlan_id]
-                else
-                    vlan = CONF[:start_vlan] + nic[:network_id].to_i
-                end
-
-                if !bridge_exists? bridge
-                    create_bridge bridge
-                    ifup bridge
-                end
-
-                if !device_exists?(dev, vlan)
-                    create_dev_vlan(dev, vlan)
-                    ifup(dev, vlan)
-                end
-
-                if !attached_bridge_dev?(bridge, dev, vlan)
-                    attach_brigde_dev(bridge, dev, vlan)
-                end
-            end
-        end
-
-        unlock
-
-        return 0
-    end
-
-    ############################################################################
-    # Private interface, methods to manage bridges and VLAN tags through the
-    # brctl and ip commands
-    ############################################################################
-    private
-
-    def bridge_exists?(bridge)
-        @bridges.keys.include? bridge
-    end
-
-    def create_bridge(bridge)
-        OpenNebula.exec_and_log("#{command(:brctl)} addbr #{bridge}")
-        @bridges[bridge] = Array.new
-    end
-
-    def device_exists?(dev, vlan=nil)
-        dev = "#{dev}.#{vlan}" if vlan
-        `#{command(:ip)} link show #{dev}`
-        $?.exitstatus == 0
-    end
-
-    def create_dev_vlan(dev, vlan)
-        cmd = "#{command(:ip)} link add link #{dev}"
-        cmd << " name #{dev}.#{vlan} type vlan id #{vlan}"
-
-        OpenNebula.exec_and_log(cmd)
-    end
-
-    def attached_bridge_dev?(bridge, dev, vlan=nil)
-        return false if !bridge_exists? bridge
-        
-        dev = "#{dev}.#{vlan}" if vlan
-        @bridges[bridge].include? dev
-    end
-
-    def attach_brigde_dev(bridge, dev, vlan=nil)
-        dev = "#{dev}.#{vlan}" if vlan
-        
-        OpenNebula.exec_and_log("#{command(:brctl)} addif #{bridge} #{dev}")
-        @bridges[bridge] << dev
-    end
-
-    def ifup(dev, vlan=nil)
-        dev = "#{dev}.#{vlan}" if vlan
-        OpenNebula.exec_and_log("#{command(:ip)} link set #{dev} up")
-    end
-end
diff --git a/src/vnm_mad/remotes/802.1Q/vlan_tag_driver.rb b/src/vnm_mad/remotes/802.1Q/vlan_tag_driver.rb
new file mode 100644
index 0000000000..bc2f6c0ce1
--- /dev/null
+++ b/src/vnm_mad/remotes/802.1Q/vlan_tag_driver.rb
@@ -0,0 +1,51 @@
+# -------------------------------------------------------------------------- #
+# Copyright 2002-2014, OpenNebula Project (OpenNebula.org), C12G Labs        #
+#                                                                            #
+# 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.                                             #
+#--------------------------------------------------------------------------- #
+
+require 'vnmmad'
+
+################################################################################
+# This driver tag VM traffic with a VLAN_ID using 802.1Q protocol. Features:
+#   - Creates a bridge and bind phisycal device if not present
+#   - Creates a tagged interface for the VM dev.vlan_id
+#
+# Once activated the VM will be attached to this bridge 
+################################################################################
+class VLANTagDriver < VNMMAD::VLANDriver
+
+    # DRIVER name and XPATH for relevant NICs
+    DRIVER       = "802.1Q"
+    XPATH_FILTER = "TEMPLATE/NIC[VLAN='YES']"
+
+    ############################################################################
+    # Creatges the driver device operations are not locked
+    ############################################################################
+    def initialize(vm, deploy_id = nil, hypervisor = nil)
+        @locking = false
+
+        super(vm, XPATH_FILTER, deploy_id, hypervisor)
+    end
+
+    ############################################################################
+    # This function creates and activate a VLAN device
+    ############################################################################
+    def create_vlan_dev(options)
+        OpenNebula.exec_and_log("#{command(:ip)} link add link"\
+            " #{options[:phydev]} name #{options[:vlan_dev]} type vlan id"\
+            " #{options[:vlan_id]}")
+
+        OpenNebula.exec_and_log("#{command(:ip)} link set #{options[:vlan_dev]} up")
+    end
+end
diff --git a/src/vnm_mad/remotes/OpenNebulaNetwork.conf b/src/vnm_mad/remotes/OpenNebulaNetwork.conf
index 8ab0d99ad4..f622b63d87 100644
--- a/src/vnm_mad/remotes/OpenNebulaNetwork.conf
+++ b/src/vnm_mad/remotes/OpenNebulaNetwork.conf
@@ -27,3 +27,10 @@
 
 # Enable ARP Cache Poisoning Prevention Rules
 :arp_cache_poisoning: true
+
+################################################################################
+# VXLAN Options
+################################################################################
+
+# Base multicast address for each VLAN. The mc address is :vxlan_mc + :vlan_id
+:vxlan_mc: 239.0.0.0
diff --git a/src/vnm_mad/remotes/lib/vlan.rb b/src/vnm_mad/remotes/lib/vlan.rb
new file mode 100644
index 0000000000..0a2f20e951
--- /dev/null
+++ b/src/vnm_mad/remotes/lib/vlan.rb
@@ -0,0 +1,135 @@
+# -------------------------------------------------------------------------- #
+# Copyright 2002-2014, OpenNebula Project (OpenNebula.org), C12G Labs        #
+#                                                                            #
+# 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.                                             #
+#--------------------------------------------------------------------------- #
+
+module VNMMAD
+
+    ############################################################################
+    # Module to use as mixin for implementing  VLAN drivers based on special 
+    # link devices though the Linux kernel features and bridges. It provides
+    # common functionality to handle bridges
+    ############################################################################
+    class VLANDriver < VNMMAD::VNMDriver
+
+        def initialize(vm_tpl, xpath_filter, deploy_id = nil, hypervisor = nil)
+            super(vm_tpl, xpath_filter, deploy_id, hypervisor)
+
+            lock
+            @bridges = get_bridges
+            unlock
+        end
+
+        # Activate the driver and creates bridges and tags devices as needed.
+        def activate
+            lock
+
+            options = Hash.new
+
+            process do |nic|
+
+                options.clear
+
+                options[:bridge]  = nic[:bridge]
+                options[:phydev]  = nic[:phydev]
+                options[:vlan_id] = nic[:vlan_id]
+                options[:network_id] = nic[:network_id]
+
+                return if options[:phydev].nil?
+
+                set_up_vlan(options)
+            end
+
+            unlock
+
+            return 0
+        end
+
+        # Set ups the VLAN for the VMs. 
+        #   @param options [Hash] including
+        #   - :phydev Physical Device to bind the VLAN traffic to
+        #   - :bridge Name of the bridge to attach the VMs and VLAN dev to
+        #   - :network_id 
+        def set_up_vlan(options)
+
+            if options[:vlan_id].nil?
+                options[:vlan_id] = CONF[:start_vlan] + options[:network_id].to_i 
+            end
+
+            options[:vlan_dev] = "#{options[:phydev]}.#{options[:vlan_id]}"
+
+            create_bridge(options[:bridge])
+
+            return if @bridges[options[:bridge]].include? options[:vlan_dev]
+
+            create_vlan_dev(options)
+
+            OpenNebula.exec_and_log("#{command(:brctl)} addif"\
+                " #{options[:bridge]} #{options[:vlan_dev]}")
+
+            @bridges[options[:bridge]] << options[:vlan_dev]
+        end
+
+        # This function needs to be implemented by any VLAN driver to
+        # create the VLAN device. The device MUST be set up by this function
+        # Options is a driver specific hash. It includes
+        #   :vlan_dev the name for the VLAN device
+        #   :phydev Physical Device to bind the VLAN traffic to
+        #   :vlan_id the VLAN ID
+        #   : additional driver specific parameters
+        def create_vlan_dev(options)
+            OpenNebula.log_error("create_vlan_dev function not implemented.")
+
+            exit -1
+        end
+            
+    private
+        # Creates a bridge if it does not exists, and brings it up. 
+        # This function IS FINAL, exits if action cannot be completed
+        #   @param bridge [String] the bridge name
+        def create_bridge(bridge)
+            return if @bridges.keys.include? bridge
+
+            OpenNebula.exec_and_log("#{command(:brctl)} addbr #{bridge}")
+
+            @bridges[bridge] = Array.new
+
+            OpenNebula.exec_and_log("#{command(:ip)} link set #{bridge} up")
+        end
+
+        # Get hypervisor bridges
+        #   @return [Hash<String>] with the bridge names
+        def get_bridges
+            bridges    = Hash.new
+            brctl_exit =`#{VNMNetwork::COMMANDS[:brctl]} show`
+
+            cur_bridge = ""
+
+            brctl_exit.split("\n")[1..-1].each do |l|
+                l = l.split
+
+                if l.length > 1
+                    cur_bridge = l[0]
+
+                    bridges[cur_bridge] = Array.new
+                    bridges[cur_bridge] << l[3] if l[3]
+                else
+                    bridges[cur_bridge] << l[0]
+                end
+            end
+
+            bridges
+        end
+    end
+end
diff --git a/src/vnm_mad/remotes/lib/vnm_driver.rb b/src/vnm_mad/remotes/lib/vnm_driver.rb
index f62df56e06..8ee3ba71c9 100644
--- a/src/vnm_mad/remotes/lib/vnm_driver.rb
+++ b/src/vnm_mad/remotes/lib/vnm_driver.rb
@@ -35,7 +35,7 @@ module VNMMAD
         #   @param deploy_id [String]
         #   @param hypervisor [String]
         def initialize(vm_tpl, xpath_filter, deploy_id = nil, hypervisor = nil)
-            @locking = false
+            @locking ||= false
 
             if !hypervisor
                 @hypervisor = detect_hypervisor
@@ -92,30 +92,6 @@ module VNMMAD
                 nil
             end
         end
-
-        # Get hypervisor bridges
-        #   @return [Hash<String>] with the bridge names
-        def get_interfaces
-            bridges    = Hash.new
-            brctl_exit =`#{VNMNetwork::COMMANDS[:brctl]} show`
-
-            cur_bridge = ""
-
-            brctl_exit.split("\n")[1..-1].each do |l|
-                l = l.split
-
-                if l.length > 1
-                    cur_bridge = l[0]
-
-                    bridges[cur_bridge] = Array.new
-                    bridges[cur_bridge] << l[3] if l[3]
-                else
-                    bridges[cur_bridge] << l[0]
-                end
-            end
-
-            bridges
-        end
         
         # Returns true if the template contains the deprecated firewall attributes:
         # - ICMP
diff --git a/src/vnm_mad/remotes/lib/vnmmad.rb b/src/vnm_mad/remotes/lib/vnmmad.rb
index dad4386931..08c816acdf 100644
--- a/src/vnm_mad/remotes/lib/vnmmad.rb
+++ b/src/vnm_mad/remotes/lib/vnmmad.rb
@@ -30,7 +30,7 @@ require 'security_groups_iptables'
 require 'vnm_driver'
 require 'fw_driver'
 require 'sg_driver'
-
+require 'vlan'
 require 'scripts_common'
 
 include OpenNebula
diff --git a/src/vnm_mad/remotes/vxlan/clean b/src/vnm_mad/remotes/vxlan/clean
new file mode 120000
index 0000000000..940540d063
--- /dev/null
+++ b/src/vnm_mad/remotes/vxlan/clean
@@ -0,0 +1 @@
+../fw/clean
\ No newline at end of file
diff --git a/src/vnm_mad/remotes/vxlan/post b/src/vnm_mad/remotes/vxlan/post
new file mode 120000
index 0000000000..e0046b5997
--- /dev/null
+++ b/src/vnm_mad/remotes/vxlan/post
@@ -0,0 +1 @@
+../fw/post
\ No newline at end of file
diff --git a/src/vnm_mad/remotes/vxlan/pre b/src/vnm_mad/remotes/vxlan/pre
new file mode 100755
index 0000000000..a44a58d8a8
--- /dev/null
+++ b/src/vnm_mad/remotes/vxlan/pre
@@ -0,0 +1,25 @@
+#!/usr/bin/env ruby
+
+# -------------------------------------------------------------------------- #
+# Copyright 2002-2014, OpenNebula Project (OpenNebula.org), C12G Labs        #
+#                                                                            #
+# 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.                                             #
+#--------------------------------------------------------------------------- #
+
+$: << File.dirname(__FILE__)
+$: << File.join(File.dirname(__FILE__), "..")
+
+require 'vxlan_driver'
+
+hm = VXLANDriver.from_base64(ARGV[0])
+exit hm.activate
diff --git a/src/vnm_mad/remotes/vxlan/vxlan_driver.rb b/src/vnm_mad/remotes/vxlan/vxlan_driver.rb
new file mode 100644
index 0000000000..c145db4726
--- /dev/null
+++ b/src/vnm_mad/remotes/vxlan/vxlan_driver.rb
@@ -0,0 +1,54 @@
+# -------------------------------------------------------------------------- #
+# Copyright 2002-2014, OpenNebula Project (OpenNebula.org), C12G Labs        #
+#                                                                            #
+# 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.                                             #
+#--------------------------------------------------------------------------- #
+
+require 'vnmmad'
+
+################################################################################
+# This driver tag VM traffic with a VLAN_ID using VXLAN protocol. Features:
+#   - Creates a bridge and bind phisycal device if not present
+#   - Creates a tagged interface for the VM dev.vlan_id
+#
+# Once activated the VM will be attached to this bridge 
+################################################################################
+class VXLANDriver < VNMMAD::VLANDriver
+
+    # DRIVER name and XPATH for relevant NICs
+    DRIVER       = "vxlan"
+    XPATH_FILTER = "TEMPLATE/NIC[VLAN='YES']"
+
+    ############################################################################
+    # Creatges the driver device operations are not locked
+    ############################################################################
+    def initialize(vm, deploy_id = nil, hypervisor = nil)
+        @locking = false
+
+        super(vm, XPATH_FILTER, deploy_id, hypervisor)
+    end
+
+    ############################################################################
+    # This function creates and activate a VLAN device
+    ############################################################################
+    def create_vlan_dev(options)
+        mc  = VNMMAD::VNMNetwork::IPv4.to_i(CONF[:vxlan_mc]) + options[:vlan_id].to_i
+        mcs = VNMMAD::VNMNetwork::IPv4.to_s(mc)
+
+        OpenNebula.exec_and_log("#{command(:ip)} link add #{options[:vlan_dev]}"\
+            " type vxlan id #{options[:vlan_id]} group #{mcs}"\
+            " dev #{options[:phydev]}")
+
+        OpenNebula.exec_and_log("#{command(:ip)} link set #{options[:vlan_dev]} up")
+    end
+end