A call loop avoidance capability is provided for preventing formation of a call loop resulting from handling of a mobile terminated (MT) call in parallel with a location update for a mobile device (MD) in a wireless communication network. The call loop avoidance capability prevents formation of a call loop between an old mobility and call management entity (MCME) and a new MCME when delivery of an MT call to an MD is performed while the MD is in the process of moving from the old MCME to the new MCME using a location update procedure. An enhanced call routing procedure supports direct delivery of the MT call from the new MCME to the MD (rather than delivery of the MT call by the new MCME to the MD via the old MCME) in order to prevent formation of a call loop between the old MCME and the new MCME.