A nested translated extended copy function provides direct storage-to-storage copying with no data passing through the virtual controller. In one embodiment, a method for performing an extended copy operation on a physical drive reserved to a virtual controller comprises: receiving at least one extended copy command for copying from a device having extended copy capability; parsing the extended copy command; translating the extended copy command into at least one translated command; and sending the translated command to a physical drive having extended copy capability. In another embodiment, a method for performing an extended copy operation comprises translating at least one extended copy command into at least one translated command capable of execution by a physical drive having extended copy capability, wherein the physical drive is reserved to a virtual controller. A data storage system consistent with the invention comprises a server, a source device, a target device which is a virtual storage device, and a virtual storage appliance in communication with the server, source device, and target device. The virtual storage appliance is adapted to receive an extended copy command from the server for performing an extended copy operation from the source device, to parse the extended copy command, to build at least one translated command capable of execution by the target device, and to transmit the translated command to the target device.