VRF and L2TPv3 Configuration and Interaction
VRF (Virtual Routing and Forwarding) instances allow multiple independent routing tables to coexist on the same router at Layer 3. While interfaces can typically be assigned to specific VRFs, this cannot be done directly with L2TPv3-enabled interfaces configured with the xconnect command.
This limitation exists because L2TPv3 with xconnect transforms the interface into a Layer 2 interface, removing Layer 3 routing capabilities. However, there are two ways to work with VRFs and L2TPv3:
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Standard approach: Associate the subnet served through the L2TPv3 tunnel with a VRF by assigning the default gateway for that subnet to the desired VRF.
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VRF-Aware L2TPv3: A specialized feature primarily used in MPLS environments that enables direct VRF integration with L2TPv3. This feature is platform-specific and requires compatible IOS versions.
Links
https://networklessons.com/mpls/vrf-lite-configuration-on-cisco-ios
https://networklessons.com/security/l2tpv3-layer-2-tunnel-protocol-version-3