diff --git a/neutron/agent/l3/agent.py b/neutron/agent/l3/agent.py
index b1154f30527..e2802e10768 100644
--- a/neutron/agent/l3/agent.py
+++ b/neutron/agent/l3/agent.py
@@ -492,18 +492,22 @@ class L3NATAgent(ha.AgentMixin,
             ri.initialize(self.process_monitor)
         except Exception:
             with excutils.save_and_reraise_exception():
-                del self.router_info[router_id]
                 LOG.exception('Error while initializing router %s',
                               router_id)
-                self.namespaces_manager.ensure_router_cleanup(router_id)
-                try:
-                    ri.delete()
-                except Exception:
-                    LOG.exception('Error while deleting router %s',
-                                  router_id)
+                self._cleanup_failed_router(router_id, delete_router_info=True)
 
         self._resize_process_pool()
 
+    def _cleanup_failed_router(self, router_id, delete_router_info):
+        ri = self.router_info.pop(router_id)
+        self.namespaces_manager.ensure_router_cleanup(router_id)
+        try:
+            if delete_router_info:
+                ri.delete()
+        except Exception:
+            LOG.exception('Error while deleting router %s',
+                          router_id)
+
     def _safe_router_removed(self, router_id):
         """Try to delete a router and return True if successful."""
         # The l3_ext_manager API expects a router dict, look it up
@@ -632,8 +636,22 @@ class L3NATAgent(ha.AgentMixin,
         self._router_added(router['id'], router)
         ri = self.router_info[router['id']]
         ri.router = router
-        ri.process()
+        try:
+            ri.process()
+        except Exception:
+            with excutils.save_and_reraise_exception():
+                LOG.exception('Error while processing router %s',
+                              router['id'])
+                # NOTE(slaweq): deleting of the router info in the
+                # _cleanup_failed_router is avoided as in case of error,
+                # processing of the router will be retried on next call and
+                # that may lead to some race conditions e.g. with
+                # configuration of the DVR router's FIP gateway
+                self._cleanup_failed_router(router['id'],
+                                            delete_router_info=False)
+
         registry.notify(resources.ROUTER, events.AFTER_CREATE, self, router=ri)
+
         self.l3_ext_manager.add_router(self.context, router)
 
     def _process_updated_router(self, router):
diff --git a/neutron/tests/unit/agent/l3/test_agent.py b/neutron/tests/unit/agent/l3/test_agent.py
index b3a4d100fba..f1db475f399 100644
--- a/neutron/tests/unit/agent/l3/test_agent.py
+++ b/neutron/tests/unit/agent/l3/test_agent.py
@@ -2732,6 +2732,23 @@ class TestBasicRouterOperations(BasicRouterOperationsFramework):
     def test_disable_metadata_proxy_spawn(self):
         self._configure_metadata_proxy(enableflag=False)
 
+    def test__process_router_added_router_not_in_cache_after_failure(self):
+        agent = l3_agent.L3NATAgent(HOSTNAME, self.conf)
+        router_id = _uuid()
+        router = {'id': router_id}
+        ri_mock = mock.Mock()
+
+        class TestRouterProcessingException(Exception):
+            pass
+
+        with mock.patch.object(agent, "_router_added"), \
+                mock.patch.dict(agent.router_info, {router_id: ri_mock}):
+            ri_mock.process.side_effect = TestRouterProcessingException()
+            self.assertRaises(
+                TestRouterProcessingException,
+                agent._process_added_router, router)
+            self.assertNotIn(router_id, agent.router_info)
+
     def _test_process_routers_update_rpc_timeout(self, ext_net_call=False,
                                                  ext_net_call_failed=False):
         agent = l3_agent.L3NATAgent(HOSTNAME, self.conf)