diff --git a/neutron/common/ovn/constants.py b/neutron/common/ovn/constants.py
index 4b4d94ff243..2a4afbf4a92 100644
--- a/neutron/common/ovn/constants.py
+++ b/neutron/common/ovn/constants.py
@@ -393,6 +393,8 @@ LSP_OPTIONS_MCAST_FLOOD = 'mcast_flood'
 LSP_OPTIONS_QOS_MIN_RATE = 'qos_min_rate'
 
 LRP_OPTIONS_RESIDE_REDIR_CH = 'reside-on-redirect-chassis'
+LRP_OPTIONS_REDIRECT_TYPE = 'redirect-type'
+BRIDGE_REDIRECT_TYPE = "bridged"
 
 # Port Binding types
 PB_TYPE_VIRTUAL = 'virtual'
diff --git a/neutron/plugins/ml2/drivers/ovn/mech_driver/ovsdb/maintenance.py b/neutron/plugins/ml2/drivers/ovn/mech_driver/ovsdb/maintenance.py
index 7e427e272a2..c1870af96c3 100644
--- a/neutron/plugins/ml2/drivers/ovn/mech_driver/ovsdb/maintenance.py
+++ b/neutron/plugins/ml2/drivers/ovn/mech_driver/ovsdb/maintenance.py
@@ -725,10 +725,7 @@ class DBInconsistenciesPeriodics(SchemaAwarePeriodicsBase):
         # Get router ports belonging to VLAN networks
         vlan_nets = self._ovn_client._plugin.get_networks(
             context, {pnet.NETWORK_TYPE: [n_const.TYPE_VLAN]})
-        # FIXME(ltomasbo): Once Bugzilla 2162756 is fixed the
-        # is_provider_network check should be removed
-        vlan_net_ids = [vn['id'] for vn in vlan_nets
-                        if not utils.is_provider_network(vn)]
+        vlan_net_ids = [vn['id'] for vn in vlan_nets]
         router_ports = self._ovn_client._plugin.get_ports(
             context, {'network_id': vlan_net_ids,
                       'device_owner': n_const.ROUTER_PORT_OWNERS})
diff --git a/neutron/plugins/ml2/drivers/ovn/mech_driver/ovsdb/ovn_client.py b/neutron/plugins/ml2/drivers/ovn/mech_driver/ovsdb/ovn_client.py
index 1aa80f58cbd..96b7b61360c 100644
--- a/neutron/plugins/ml2/drivers/ovn/mech_driver/ovsdb/ovn_client.py
+++ b/neutron/plugins/ml2/drivers/ovn/mech_driver/ovsdb/ovn_client.py
@@ -1573,21 +1573,29 @@ class OVNClient(object):
         if network is None:
             network = self._plugin.get_network(admin_context,
                                                port['network_id'])
+
         # For VLAN type networks we need to set the
         # "reside-on-redirect-chassis" option so the routing for this
         # logical router port is centralized in the chassis hosting the
         # distributed gateway port.
         # https://github.com/openvswitch/ovs/commit/85706c34d53d4810f54bec1de662392a3c06a996
-        # FIXME(ltomasbo): Once Bugzilla 2162756 is fixed the
-        # is_provider_network check should be removed
         if network.get(pnet.NETWORK_TYPE) == const.TYPE_VLAN:
             options[ovn_const.LRP_OPTIONS_RESIDE_REDIR_CH] = (
-                'false' if (ovn_conf.is_ovn_distributed_floating_ip() and
-                            not utils.is_provider_network(network))
+                'false' if ovn_conf.is_ovn_distributed_floating_ip()
                 else 'true')
 
         is_gw_port = const.DEVICE_OWNER_ROUTER_GW == port.get(
             'device_owner')
+
+        # NOTE(ltomasbo): For VLAN type networks connected through the gateway
+        # port there is a need to set the redirect-type option to bridge to
+        # ensure traffic is not centralized through the controller.
+        # For geneve based tenant networks it won't have any effect as it only
+        # applies to network with a localnet associated to it
+        if is_gw_port and ovn_conf.is_ovn_distributed_floating_ip():
+            options[ovn_const.LRP_OPTIONS_REDIRECT_TYPE] = (
+                ovn_const.BRIDGE_REDIRECT_TYPE)
+
         if is_gw_port and ovn_conf.is_ovn_emit_need_to_frag_enabled():
             try:
                 router_ports = self._get_router_ports(admin_context,
diff --git a/releasenotes/notes/bug-2003455-dff0d0f00b5a18e2.yaml b/releasenotes/notes/bug-2003455-dff0d0f00b5a18e2.yaml
new file mode 100644
index 00000000000..c17fe4338da
--- /dev/null
+++ b/releasenotes/notes/bug-2003455-dff0d0f00b5a18e2.yaml
@@ -0,0 +1,9 @@
+---
+fixes:
+  - |
+    [`bug 2003455 <https://bugs.launchpad.net/neutron/+bug/2003455>`_]
+    Previous commit (https://review.opendev.org/c/openstack/neutron/+/871252)
+    added a workaround to avoid vlan provider networks traffic to be tunneled
+    to the compute nodes but it was still centralized. Now the traffic is
+    distributed thanks to using the "redirect-type" flag on the ovn gateway
+    port.