diff --git a/instack_undercloud/undercloud.py b/instack_undercloud/undercloud.py
index e89bcd9a3..16c188170 100644
--- a/instack_undercloud/undercloud.py
+++ b/instack_undercloud/undercloud.py
@@ -2195,11 +2195,9 @@ def _config_neutron_segments_and_subnets(sdk, ctlplane_id):
             s = CONF.get(name)
 
             phynet = name
+            metadata_nexthop = s.gateway
             if name == CONF.local_subnet:
                 phynet = PHYSICAL_NETWORK
-
-            metadata_nexthop = s.gateway
-            if str(netaddr.IPNetwork(CONF.local_ip).ip) in s.cidr:
                 metadata_nexthop = str(netaddr.IPNetwork(CONF.local_ip).ip)
 
             host_routes = [{'destination': '169.254.169.254/32',
diff --git a/releasenotes/notes/fix-route-to-metadata-on-local-subnet-5ee8d2221a2fc762.yaml b/releasenotes/notes/fix-route-to-metadata-on-local-subnet-5ee8d2221a2fc762.yaml
new file mode 100644
index 000000000..042d0a1c4
--- /dev/null
+++ b/releasenotes/notes/fix-route-to-metadata-on-local-subnet-5ee8d2221a2fc762.yaml
@@ -0,0 +1,6 @@
+---
+fixes:
+  - |
+    Fixes `bug 1757418 <https://bugs.launchpad.net/tripleo/+bug/1757418>`__.
+    The route to the metadata service on the local subnet was incorrectly set
+    to the gateway. It is now set to the ``local_ip`` of the undercloud.