diff --git a/libnetwork/cni/config.go b/libnetwork/cni/config.go
index b0aa19d94..b1f89400c 100644
--- a/libnetwork/cni/config.go
+++ b/libnetwork/cni/config.go
@@ -82,7 +82,7 @@ func (n *cniNetwork) networkCreate(newNetwork *types.Network, defaultNet bool) (
 		return nil, errors.Wrapf(types.ErrInvalidArg, "unsupported driver %s", newNetwork.Driver)
 	}
 
-	err = internalutil.ValidateSubnets(newNetwork, usedNetworks)
+	err = internalutil.ValidateSubnets(newNetwork, !newNetwork.Internal, usedNetworks)
 	if err != nil {
 		return nil, err
 	}
diff --git a/libnetwork/internal/util/validate.go b/libnetwork/internal/util/validate.go
index bfc5e2247..ac3934f8d 100644
--- a/libnetwork/internal/util/validate.go
+++ b/libnetwork/internal/util/validate.go
@@ -65,11 +65,11 @@ func ValidateSubnet(s *types.Subnet, addGateway bool, usedNetworks []*net.IPNet)
 }
 
 // ValidateSubnets will validate the subnets for this network.
-// It also sets the gateway if the gateway is empty and it sets
+// It also sets the gateway if the gateway is empty and addGateway is set to true
 // IPv6Enabled to true if at least one subnet is ipv6.
-func ValidateSubnets(network *types.Network, usedNetworks []*net.IPNet) error {
+func ValidateSubnets(network *types.Network, addGateway bool, usedNetworks []*net.IPNet) error {
 	for i := range network.Subnets {
-		err := ValidateSubnet(&network.Subnets[i], !network.Internal, usedNetworks)
+		err := ValidateSubnet(&network.Subnets[i], addGateway, usedNetworks)
 		if err != nil {
 			return err
 		}
diff --git a/libnetwork/netavark/config.go b/libnetwork/netavark/config.go
index 7de59f807..16b4e5c53 100644
--- a/libnetwork/netavark/config.go
+++ b/libnetwork/netavark/config.go
@@ -115,16 +115,13 @@ func (n *netavarkNetwork) networkCreate(newNetwork *types.Network, defaultNet bo
 		return nil, errors.Wrapf(types.ErrInvalidArg, "unsupported driver %s", newNetwork.Driver)
 	}
 
-	err = internalutil.ValidateSubnets(newNetwork, usedNetworks)
+	// add gatway when not internal or dns enabled
+	addGateway := !newNetwork.Internal || newNetwork.DNSEnabled
+	err = internalutil.ValidateSubnets(newNetwork, addGateway, usedNetworks)
 	if err != nil {
 		return nil, err
 	}
 
-	// FIXME: If we have a working solution for internal networks with dns this check should be removed.
-	if newNetwork.DNSEnabled && newNetwork.Internal {
-		return nil, errors.New("cannot set internal and dns enabled")
-	}
-
 	newNetwork.Created = time.Now()
 
 	if !defaultNet {
diff --git a/libnetwork/netavark/config_test.go b/libnetwork/netavark/config_test.go
index e8b09658c..87c32ed42 100644
--- a/libnetwork/netavark/config_test.go
+++ b/libnetwork/netavark/config_test.go
@@ -616,7 +616,7 @@ var _ = Describe("Config", func() {
 			Expect(network1.Driver).To(Equal("bridge"))
 			Expect(network1.Subnets).To(HaveLen(1))
 			Expect(network1.Subnets[0].Subnet.String()).ToNot(BeEmpty())
-			Expect(network1.Subnets[0].Gateway).To(BeNil())
+			Expect(network1.Subnets[0].Gateway.String()).ToNot(BeEmpty())
 			Expect(network1.Internal).To(BeTrue())
 		})
 
@@ -729,9 +729,11 @@ var _ = Describe("Config", func() {
 				Internal:   true,
 				DNSEnabled: true,
 			}
-			_, err := libpodNet.NetworkCreate(network)
-			Expect(err).To(HaveOccurred())
-			Expect(err.Error()).To(Equal("cannot set internal and dns enabled"))
+			network1, err := libpodNet.NetworkCreate(network)
+			Expect(err).ToNot(HaveOccurred())
+			Expect(network1.Driver).To(Equal("bridge"))
+			Expect(network1.Internal).To(Equal(true))
+			Expect(network1.DNSEnabled).To(Equal(true))
 		})
 
 		It("network inspect partial ID", func() {
diff --git a/libnetwork/netavark/network.go b/libnetwork/netavark/network.go
index 7122acf98..efea36fec 100644
--- a/libnetwork/netavark/network.go
+++ b/libnetwork/netavark/network.go
@@ -231,7 +231,9 @@ func parseNetwork(network *types.Network) error {
 		return errors.Errorf("invalid network ID %q", network.ID)
 	}
 
-	return util.ValidateSubnets(network, nil)
+	// add gatway when not internal or dns enabled
+	addGateway := !network.Internal || network.DNSEnabled
+	return util.ValidateSubnets(network, addGateway, nil)
 }
 
 func (n *netavarkNetwork) createDefaultNetwork() (*types.Network, error) {