diff --git a/components/engine/hack/dockerfile/install/proxy.installer b/components/engine/hack/dockerfile/install/proxy.installer
index 8a3b0138bdf..1a0086f3231 100755
--- a/components/engine/hack/dockerfile/install/proxy.installer
+++ b/components/engine/hack/dockerfile/install/proxy.installer
@@ -3,7 +3,7 @@
 # LIBNETWORK_COMMIT is used to build the docker-userland-proxy binary. When
 # updating the binary version, consider updating github.com/docker/libnetwork
 # in vendor.conf accordingly
-LIBNETWORK_COMMIT=96bcc0dae898308ed659c5095526788a602f4726
+LIBNETWORK_COMMIT=45c710223c5fbf04dc3028b9a90b51892e36ca7f
 
 install_proxy() {
 	case "$1" in
diff --git a/components/engine/vendor.conf b/components/engine/vendor.conf
index 3538f85a939..2942c3a3dc0 100644
--- a/components/engine/vendor.conf
+++ b/components/engine/vendor.conf
@@ -38,7 +38,7 @@ github.com/gofrs/flock                              7f43ea2e6a643ad441fc12d0ecc0
 # libnetwork
 
 # When updating, also update LIBNETWORK_COMMIT in hack/dockerfile/install/proxy.installer accordingly
-github.com/docker/libnetwork                        96bcc0dae898308ed659c5095526788a602f4726
+github.com/docker/libnetwork                        45c710223c5fbf04dc3028b9a90b51892e36ca7f
 github.com/docker/go-events                         9461782956ad83b30282bf90e31fa6a70c255ba9
 github.com/armon/go-radix                           e39d623f12e8e41c7b5529e9a9dd67a1e2261f80
 github.com/armon/go-metrics                         eb0af217e5e9747e41dd5303755356b62d28e3ec
diff --git a/components/engine/vendor/github.com/docker/libnetwork/drivers/bridge/setup_ip_forwarding.go b/components/engine/vendor/github.com/docker/libnetwork/drivers/bridge/setup_ip_forwarding.go
index 3db12bfd2f7..10f61a18686 100644
--- a/components/engine/vendor/github.com/docker/libnetwork/drivers/bridge/setup_ip_forwarding.go
+++ b/components/engine/vendor/github.com/docker/libnetwork/drivers/bridge/setup_ip_forwarding.go
@@ -34,11 +34,11 @@ func setupIPForwarding(enableIPTables bool) error {
 		if err := configureIPForwarding(true); err != nil {
 			return fmt.Errorf("Enabling IP forwarding failed: %v", err)
 		}
-	}
-
-	// Set the default policy on forward chain to drop only if the
-	// daemon option iptables is not set to false.
-	if enableIPTables {
+		// When enabling ip_forward set the default policy on forward chain to
+		// drop only if the daemon option iptables is not set to false.
+		if !enableIPTables {
+			return nil
+		}
 		if err := iptables.SetDefaultPolicy(iptables.Filter, "FORWARD", iptables.Drop); err != nil {
 			if err := configureIPForwarding(false); err != nil {
 				logrus.Errorf("Disabling IP forwarding failed, %v", err)