diff --git a/server/src/com/cloud/network/NetworkServiceImpl.java b/server/src/com/cloud/network/NetworkServiceImpl.java
index bdba1569ffa..da06859b79c 100755
--- a/server/src/com/cloud/network/NetworkServiceImpl.java
+++ b/server/src/com/cloud/network/NetworkServiceImpl.java
@@ -3781,9 +3781,9 @@ public class NetworkServiceImpl extends ManagerBase implements  NetworkService {
         } else {
             s_logger.debug("Private network already exists: " + privateNetwork);
             //Do not allow multiple private gateways with same Vlan within a VPC
-                        if (vpcId.equals(privateNetwork.getVpcId())) {
-                            throw new InvalidParameterValueException("Private network for the vlan: " + uriString + " and cidr  " + cidr + "  already exists " + "for Vpc " + vpcId
-                                    + " in zone " + _entityMgr.findById(DataCenter.class, pNtwk.getDataCenterId()).getName());
+            if (vpcId != null && vpcId.equals(privateNetwork.getVpcId())) {
+                throw new InvalidParameterValueException("Private network for the vlan: " + uriString + " and cidr  " + cidr + "  already exists " + "for Vpc " + vpcId
+                        + " in zone " + _entityMgr.findById(DataCenter.class, pNtwk.getDataCenterId()).getName());
             }
         }
 
diff --git a/server/src/com/cloud/network/vpc/VpcManagerImpl.java b/server/src/com/cloud/network/vpc/VpcManagerImpl.java
index c517fb1c72c..3e83c81e365 100644
--- a/server/src/com/cloud/network/vpc/VpcManagerImpl.java
+++ b/server/src/com/cloud/network/vpc/VpcManagerImpl.java
@@ -1590,9 +1590,9 @@ public class VpcManagerImpl extends ManagerBase implements VpcManager, VpcProvis
         if (privateNtwk == null) {
             s_logger.info("creating new network for vpc " + vpc + " using broadcast uri: " + broadcastUri);
             String networkName = "vpc-" + vpc.getName() + "-privateNetwork";
-                        privateNtwk =
-                            _ntwkSvc.createPrivateNetwork(networkName, networkName, physicalNetworkIdFinal, broadcastUri, ipAddress, null, gateway, netmask,
-                                gatewayOwnerId, vpcId, isSourceNat, networkOfferingId);
+            /* vpcid should not be set on the new network as it is not part of the vpc but an outside net */
+            privateNtwk = _ntwkSvc.createPrivateNetwork(networkName, networkName, physicalNetworkIdFinal, broadcastUri, ipAddress, null,
+                    gateway, netmask, gatewayOwnerId, null, isSourceNat, networkOfferingId);
         } else { // create the nic/ip as createPrivateNetwork doesn''t do that work for us now
                         s_logger.info("found and using existing network for vpc " + vpc + ": " + broadcastUri);
                         DataCenterVO dc = _dcDao.lockRow(physNetFinal.getDataCenterId(), true);