Techniques for processing an IP packet at a router that supports SS7 signaling include receiving IP routing data that associates a network link and a destination IP address for a node in a signaling network that includes a plurality of signaling nodes. When an ingress IP data packet is received, it is determined whether conditions are satisfied for locally processing an SS7 payload within the ingress IP data packet. If it is determined that conditions are satisfied for locally processing the SS7 payload, then the SS7 payload is processed locally, i.e., without sending the SS7 payload over a network link to a different node in the signaling network. If it is determined that conditions are not satisfied for locally processing the SS7 payload, then the ingress IP data packet is routed normally. These techniques allow reduced numbers of expensive STP devices and expanded routing options in a signaling network.