diff --git a/_modules/contrail.py b/_modules/contrail.py
index ae691a2..ab4d3c9 100644
--- a/_modules/contrail.py
+++ b/_modules/contrail.py
@@ -24,10 +24,11 @@
     from vnc_api.vnc_api import LinklocalServiceEntryType, \
         LinklocalServicesTypes, GlobalVrouterConfig, GlobalSystemConfig
     from vnc_api.gen.resource_client import VirtualRouter, AnalyticsNode, \
-        ConfigNode, DatabaseNode, BgpRouter
+        ConfigNode, DatabaseNode, BgpRouter, VirtualNetwork
     from vnc_api.gen.resource_xsd import AddressFamilies, BgpSessionAttributes, \
         BgpSession, BgpPeeringAttributes, BgpRouterParams, AuthenticationData, \
-        AuthenticationKeyItem
+        AuthenticationKeyItem, VirtualNetworkType, IpamSubnetType, SubnetType, \
+        VnSubnetsType, RouteTargetList
 
     HAS_CONTRAIL = True
 except ImportError:
@@ -1547,6 +1548,142 @@
     return ret
 
 
+def virtual_network_create(name, conf=None, **kwargs):
+    '''
+    Create Contrail virtual network
+    CLI Example:
+    .. code-block:: bash
+    salt '*' contrail.virtual_network_create name
+
+    salt.cmdRun(pepperEnv, 'ntw01*', 'salt-call contrail.virtual_network_create
+    "testicek" "{"external":"True","ip":"172.16.111.0","prefix":24,
+    "asn":64512,"target":10000}" ')
+
+    Parameters:
+    name required - name of the new network
+
+    conf (dict) optional:
+        domain (string) optional - which domain use for vn creation
+        project (string) optional - which project use for vn creation
+        ipam_domain (string) optional - domain for ipam
+        ipam_project (string) optional - project for ipam
+        ipam_name (string) optional - ipam name
+        ip_prefix (string) optional - format is xxx.xxx.xxx.xxx
+        ip_prefix_len (int) optional - format is xx
+        asn (int) optional - autonomus system number
+        target (int) optional - route target number
+        external (boolean) optional - set if network is external
+
+        allow_transit (boolean) optional - enable allow transit
+        forwarding_mode (any of ['l2_l3','l2','l3']) optional
+            - packet forwarding mode for this virtual network
+        rpf (any of ['enabled','disabled']) optional
+            - Enable or disable Reverse Path Forwarding check
+        for this network
+        mirror_destination (boolean) optional
+            - Mark the vn as mirror destination network
+    '''
+    if conf is None:
+        conf = {}
+
+    # check for domain, is missing set to default-domain
+    if 'domain' in conf:
+        vn_domain = str(conf['domain'])
+    else:
+        vn_domain = 'default-domain'
+    # check for project, is missing set to admin
+    if 'project' in conf:
+        vn_project = str(conf['project'])
+    else:
+        vn_project = 'admin'
+    # check for ipam domain,default is default-domain
+    if 'ipam_domain' in conf:
+        ipam_domain = str(conf['ipam_domain'])
+    else:
+        ipam_domain = 'default-domain'
+    # check for ipam domain,default is default-domain
+    if 'ipam_project' in conf:
+        ipam_project = str(conf['ipam_project'])
+    else:
+        ipam_project = 'default-project'
+
+    if 'ipam_name' in conf:
+        ipam_name = conf['ipam_name']
+    else:
+        ipam_name = 'default-network-ipam'
+
+    ret = {'name': name,
+           'changes': {},
+           'result': True,
+           'comment': ''}
+
+    # list of existing vn networks
+    vn_networks = []
+    vnc_client = _auth(**kwargs)
+    gsc_obj = vnc_client.project_read(fq_name=[domain,
+                                               project])
+    # check if the network exists
+    vn_networks_list = vnc_client._objects_list('virtual_network')
+    fq = [domain, project, name]
+    for network in vn_networks_list['virtual-networks']:
+        if fq == network['fq_name']:
+            ret['comment'] = ("Virtual network with name "
+                              + name + " already exists")
+            return ret
+
+    vn_obj = VirtualNetwork(name)
+    vn_type_obj = VirtualNetworkType()
+    # get ipam from default project and domain
+    ipam = vnc_client.network_ipam_read(fq_name=[ipam_domain,
+                                                 ipam_project,
+                                                 ipam_name])
+
+    # create subnet
+    if 'ip_prefix' in conf and 'ip_prefix_len' in conf:
+        ipam_subnet_type = IpamSubnetType(subnet=SubnetType(
+                                          ip_prefix=conf['ip_prefix'],
+                                          ip_prefix_len=conf['ip_prefix_len']))
+
+        vn_subnets_type_obj = VnSubnetsType(ipam_subnets=[ipam_subnet_type])
+        vn_obj.add_network_ipam(ipam, vn_subnets_type_obj)
+
+    # add route target to the network
+    if 'asn' in conf and 'target' in conf:
+        route_target_list_obj = RouteTargetList(["target:{0}:{1}"
+                                                 .format(conf['asn'],
+                                                         conf['target'])])
+        vn_obj.set_route_target_list(route_target_list_obj)
+
+    if 'external' in conf:
+        vn_obj.set_router_external(conf['external'])
+
+    if 'allow_transit' in conf:
+        vn_type_obj.set_allow_transit(conf['allow_transit'])
+
+    if 'forwarding_mode' in conf:
+        if conf['forwarding_mode'] in ['l2_l3', 'l2', 'l3']:
+            vn_type_obj.set_forwarding_mode(conf['forwarding_mode'])
+
+    if 'rpf' in conf:
+        vn_type_obj.set_rpf(conf['rpf'])
+
+    if 'mirror_destination' in conf:
+        vn_type_obj.set_mirror_destination(conf['mirror_destination'])
+
+    vn_obj.set_virtual_network_properties(vn_type_obj)
+
+    # create virtual network
+    if __opts__['test']:
+        ret['result'] = None
+        ret['comment'] = ("Virtual network with name {0} will be created"
+                          .format(name))
+    else:
+        vnc_client.virtual_network_create(vn_obj)
+        ret['comment'] = ("Virtual network with name {0} was created"
+                          .format(name))
+    return ret
+
+
 def service_appliance_set_list(**kwargs):
     '''
     Return a list of Contrail service appliance set