A network element is provided. The network element includes a tunneling endpoint having a virtual address. The tunneling endpoint is configured to receive an address resolution reply that has a destination MAC (media access control) address matching the virtual address of the tunneling endpoint and is from a network device in a first network that includes the tunneling endpoint. The tunneling endpoint is further configured to send the address resolution reply via an interconnect to a further tunneling endpoint in a further network. A method for address resolution in virtual extensible networks is also provided.