A fibre channel switch element and method for routing fibre channel frames is provided. The switch element includes a receive segment that can add a virtual storage area network (“VSAN”) tagging header to frames that are received by the receive segment; and strip the VSAN tagging header before frames are sent to ports that do not support virtual fabric capability. The receive segment includes a table used for matching fabric extension parameters. An incoming frame's VSAN identity value is compared to a control word entry to generate a value used for routing the incoming frame. The table is used to determine if a frame is part of a virtual fabric. The routing table for each port is used to route frames and the routing table includes entries for supported virtual fabrics.