diff --git a/systemvm/patches/debian/config/opt/cloud/bin/merge.py b/systemvm/patches/debian/config/opt/cloud/bin/merge.py
index 76c0ffb8c02..aab29e8a4cd 100755
--- a/systemvm/patches/debian/config/opt/cloud/bin/merge.py
+++ b/systemvm/patches/debian/config/opt/cloud/bin/merge.py
@@ -222,10 +222,13 @@ class updateDataBag:
             dp['source_nat'] = False
             dp['add'] = True
             dp['one_to_one_nat'] = False
-            if('localgw' in self.qFile.data['cmd_line']):
-                dp['gateway'] = self.qFile.data['cmd_line']['localgw']
+            if nw_type == "public":
+                dp['gateway'] = self.qFile.data['cmd_line']['gateway']
             else:
-                dp['gateway'] = 'None'
+                if('localgw' in self.qFile.data['cmd_line']):
+                    dp['gateway'] = self.qFile.data['cmd_line']['localgw']
+                else:
+                    dp['gateway'] = 'None'
             dp['nic_dev_id'] = num
             dp['nw_type'] = nw_type
             qf = QueueFile()