A method for assigning virtual lanes (VL) in a fibre channel switch is provided. The fibre channel switch element includes a virtual lane cache that can compare incoming frame parameters based on which virtual lanes may be assigned; and a register to store parameters used for virtual lane assignment. The method includes, determining if VL assignment is to be based on an incoming frame parameter or a programmed value; determining if an incoming frame is a preferred frame; and assigning a preferred routing priority if the incoming frame is designated as a preferred frame. The method also includes, determining if a fabric topology is known; and assigning virtual lanes based on a known fabric topology.