diff --git a/server/src/com/cloud/network/vpc/VpcManagerImpl.java b/server/src/com/cloud/network/vpc/VpcManagerImpl.java
index 0d1c5373f04..c34ad2304c0 100644
--- a/server/src/com/cloud/network/vpc/VpcManagerImpl.java
+++ b/server/src/com/cloud/network/vpc/VpcManagerImpl.java
@@ -1559,6 +1559,10 @@ public class VpcManagerImpl extends ManagerBase implements VpcManager, VpcProvis
                     s_logger.debug("Private gateway " + gateway + " was applied succesfully on the backend");
                 } else {
                     s_logger.warn("Private gateway " + gateway + " failed to apply on the backend");
+                    gatewayVO.setState(VpcGateway.State.Ready);
+                    _vpcGatewayDao.update(gatewayVO.getId(), gatewayVO);
+                    s_logger.debug("Marked gateway " + gatewayVO + " with state " + VpcGateway.State.Ready);
+
                     return false;
                 }
             }