diff --git a/patches/systemvm/debian/config/etc/init.d/cloud-early-config b/patches/systemvm/debian/config/etc/init.d/cloud-early-config
index 9e104428179..2cd6aaeb86f 100755
--- a/patches/systemvm/debian/config/etc/init.d/cloud-early-config
+++ b/patches/systemvm/debian/config/etc/init.d/cloud-early-config
@@ -243,13 +243,17 @@ setup_dhcpsrvr() {
   setup_dnsmasq
   setup_apache2 $ETH0_IP
 
-  if [ "$DEFAULTROUTE" == "true" ]
+  if [ "$DEFAULTROUTE" != "false" ]
   then
     sed -i -e "/^[#]*dhcp-option=option:router.*$/d" /etc/dnsmasq.conf
     echo "dhcp-option=option:router,$GW" >> /etc/dnsmasq.conf
     #for now set up ourself as the dns server as well
     sed -i -e "/^[#]*dhcp-option=6.*$/d" /etc/dnsmasq.conf
     echo "dhcp-option=6,$NS1,$NS2" >> /etc/dnsmasq.conf
+  else
+    sed -i -e "/^[#]*dhcp-option=option:router.*$/d" /etc/dnsmasq.conf
+    echo "dhcp-option=option:router" >> /etc/dnsmasq.conf
+    sed -i -e "/^[#]*dhcp-option=6.*$/d" /etc/dnsmasq.conf
   fi
 
   sed -i  /gateway/d /etc/hosts