The embodiments herein relate to a method performed by a SMF (108) for handling traffic for an application (201). The SMF (108) receives, from an AF (135), a plurality of candidate locations (200a, 200b) for the application (201) and traffic routing information for the application (201) for each of the plurality of locations (200a, 200b). The SMF (108) determines that the SMF (108) is allowed to steer traffic for the application (201) to a selected one of the plurality of locations. The SMF (108) selects one of the candidate locations (200a, 200b) among the plurality (200a, 200b) received from the AF (135), and steers the traffic for the application (201) to the selected candidate location (200a, 200b).