In general, techniques are for providing a direct forwarding path between virtual routers within a single virtualized routing system. In one example, a method includes combining forwarding information from a plurality of virtual routers into collapsed forwarding information that comprises one or more direct forwarding paths between the respective virtual routers. The method also includes determining a direct forwarding path to an egress interface of the second virtual router, in response to receiving a network packet at an ingress interface of a first virtual router. The method also includes forwarding the network packet from the ingress interface of the first virtual router to the egress interface of the second virtual router using the direct forwarding path, wherein the network packet traverses a switch fabric directly from the ingress interface of the first virtual router to the egress interface of the second virtual router.