A system and method for implementation of a process that propagates a link status across a media converter system implemented in a telecom and/or data com network is provided. More specifically, the system comprise XAUI and PMA/PMD interfaces that support both a copper cable and the different types of SFP+/SFP fiber-optic pluggable modules for accessing a host system and a remote link partner, respectively. With the method, the link statuses at both the copper and fiber-optic link sides of the media converter system are being monitored, such that a change of link status at one side of the media converter system will automatically be propagated across the media converter system to the other side, by dynamically enabling or disabling a respective XAUI or PMD transmitter at the opposite side of a physical layer device (PHY) of the media converter system.