A method and system are disclosed for distributing (advertising) segment identifiers in network functions virtualization and/or software defined networking environments. An exemplary method includes receiving a route advertisement that includes a prefix with a forwarding address for a first network element and receiving a segment identifier (SID) advertisement that includes a prefix SID for the prefix. The route advertisement may be received from a second network element proxying control plane functions for the first network element. Reachability information for the first network element is updated based on the route advertisement and the SID advertisement.