Method and system for routing a network packet via a network switch is provided. The method includes receiving the network packet at the network switch; extracting a service level (“SL”) field value, a source local identifier (“SLID”) field value and a destination local identifier (“DLID”) field value from the network packet; determining if a virtual lane (“VL”) configuration mode is enabled; determining a VL based on one or more of the SLID field value, the DLID field value and a VL selection parameter, in addition to the SL field value, if the VL configuration mode is enabled; and routing the network packet using the determined VL value.