An embodiment method of network protocol offloading for a packet traveling along a path having a plurality of hops in a virtual network includes checking, for each of the plurality of hops, that a virtual receiver node is safe for network protocol offloading and, when safe, deferring a network protocol processing task, forwarding the packet to a next hop among the plurality of hops, executing the network protocol processing task at a first earliest hop along the path where the virtual receiver node is unsafe for network protocol offloading, and executing the network protocol processing task at a second earliest hop along the path where the virtual receiver node includes a physical network interface that is safe for network protocol offloading.