diff --git a/api/src/com/cloud/api/commands/DisassociateIPAddrCmd.java b/api/src/com/cloud/api/commands/DisassociateIPAddrCmd.java
index 4c72a8f0f19..0e2944b750f 100644
--- a/api/src/com/cloud/api/commands/DisassociateIPAddrCmd.java
+++ b/api/src/com/cloud/api/commands/DisassociateIPAddrCmd.java
@@ -29,6 +29,7 @@ import com.cloud.api.ServerApiException;
 import com.cloud.api.response.SuccessResponse;
 import com.cloud.async.AsyncJob;
 import com.cloud.event.EventTypes;
+import com.cloud.exception.InsufficientAddressCapacityException;
 import com.cloud.exception.InvalidParameterValueException;
 import com.cloud.network.IpAddress;
 import com.cloud.user.Account;
@@ -70,7 +71,7 @@ public class DisassociateIPAddrCmd extends BaseAsyncCmd {
     }
 
     @Override
-    public void execute(){
+    public void execute() throws InsufficientAddressCapacityException{
         UserContext.current().setEventDetails("Ip Id: "+getIpAddressId());
         boolean result = _networkService.disassociateIpAddress(id);
         if (result) {
diff --git a/api/src/com/cloud/network/NetworkService.java b/api/src/com/cloud/network/NetworkService.java
index 1f26b358ffa..89833212cb6 100755
--- a/api/src/com/cloud/network/NetworkService.java
+++ b/api/src/com/cloud/network/NetworkService.java
@@ -55,7 +55,7 @@ public interface NetworkService {
      */
     IpAddress associateIP(long ipId) throws ResourceAllocationException, InsufficientAddressCapacityException, ConcurrentOperationException, ResourceUnavailableException;
 
-    boolean disassociateIpAddress(long ipAddressId);
+    boolean disassociateIpAddress(long ipAddressId) throws InsufficientAddressCapacityException;
 
     Network createNetwork(CreateNetworkCmd cmd) throws InsufficientCapacityException, ConcurrentOperationException;
 
diff --git a/server/src/com/cloud/network/NetworkManagerImpl.java b/server/src/com/cloud/network/NetworkManagerImpl.java
index 49dd1cc5b88..d78b463af99 100755
--- a/server/src/com/cloud/network/NetworkManagerImpl.java
+++ b/server/src/com/cloud/network/NetworkManagerImpl.java
@@ -1877,7 +1877,7 @@ public class NetworkManagerImpl implements NetworkManager, NetworkService, Manag
     @Override
     @DB
     @ActionEvent(eventType = EventTypes.EVENT_NET_IP_RELEASE, eventDescription = "disassociating Ip", async = true)
-    public boolean disassociateIpAddress(long ipAddressId) {
+    public boolean disassociateIpAddress(long ipAddressId) throws InsufficientAddressCapacityException{
         Long userId = UserContext.current().getCallerUserId();
         Account caller = UserContext.current().getCaller();
 
@@ -1920,6 +1920,13 @@ public class NetworkManagerImpl implements NetworkManager, NetworkService, Manag
 
         boolean success = releasePublicIpAddress(ipAddressId, userId, caller);
         if (success) {
+        	Network guestNetwork = getNetwork(ipVO.getAssociatedWithNetworkId());
+     		NetworkOffering offering = _configMgr.getNetworkOffering(guestNetwork.getNetworkOfferingId());
+     		Long vmId = ipVO.getAssociatedWithVmId();
+     		if (offering.getElasticIp() && vmId != null)  {
+     			_rulesMgr.enableElasticIpAndStaticNatForVm(_userVmDao.findById(vmId), true);
+     			return true;
+     		} 
         	return true;
         } else {
         	s_logger.warn("Failed to release public ip address id=" + ipAddressId);