A method and system for keeping an arbitrated loop open during a frame gap using a fiber channel switch element is provided. The switch element includes a port control module having a receive and transmit segment, wherein the transmit segment activates a timer whose value determines a duration during which the arbitrated loop remains open; determines if a last frame from a sequence of frames from a source port has been transmitted; modifies the timer value if a higher priority frame for transmission is unavailable; and keeps the arbitrated loop open until the timer reaches a certain value. If a higher priority frame is available for transmission before the timer value is modified then the higher priority frame is transmitted and the timer value is re-initialized.