A method for migrating a first virtual machine (VM), that includes transmitting, prior to migration, a first packet between the first VM on a first blade chassis and a second VM on a second blade chassis using a first virtual network interface card (VNIC) and a second VNIC. The method includes migrating the first VM and the first VNIC to the second blade, identifying a subnet of the first VM, identifying a subnet of the second VM, and creating a virtual router to execute on the second blade. The virtual router is associated with a third VNIC and a fourth VNIC. A first network address in the first VNIC's subnet is assigned to the third VNIC. A second network address in the second VNIC's subnet is assigned to the fourth VNIC. The method includes routing a second packet between the first VM and the second VM using the virtual router.