diff --git a/src/module.ts b/src/module.ts
index a25d65b0b..910a4849e 100644
--- a/src/module.ts
+++ b/src/module.ts
@@ -1,6 +1,6 @@
 import { resolve } from 'upath'
 import defu from 'defu'
-
+import { parseURL } from 'ufo'
 import type { Module } from '@nuxt/types'
 import { setupStaticGeneration } from './generate'
 import { resolveProviders, detectProvider } from './provider'
@@ -34,6 +34,11 @@ const imageModule: Module<ModuleOptions> = async function imageModule (moduleOpt
 
   const options: ModuleOptions = defu(moduleOptions, nuxt.options.image, defaults)
 
+  // Normalize domains to hostname
+  options.domains = options.domains
+    .map(domain => parseURL(domain, 'https://').host)
+    .filter(Boolean) as string[]
+
   options.provider = detectProvider(options.provider, nuxt.options.target === 'static')
   options[options.provider] = options[options.provider] || {}
 
diff --git a/src/provider.ts b/src/provider.ts
index 171514caf..5f9f3d526 100644
--- a/src/provider.ts
+++ b/src/provider.ts
@@ -1,6 +1,5 @@
 import { normalize, resolve, dirname } from 'upath'
 import { writeJson, mkdirp } from 'fs-extra'
-import { parseURL } from 'ufo'
 import { hash } from './utils'
 import type { ModuleOptions, InputProvider, ImageModuleProvider, ProviderSetup } from './types'
 import { ipxSetup } from './ipx'
@@ -31,7 +30,7 @@ export const providerSetup: Record<string, ProviderSetup> = {
     const imagesConfig = resolve(nuxt.options.rootDir, '.vercel_build_output/config/images.json')
     await mkdirp(dirname(imagesConfig))
     await writeJson(imagesConfig, {
-      domains: moduleOptions.domains.map(domain => parseURL(domain, 'https://').host),
+      domains: moduleOptions.domains,
       sizes: Array.from(new Set(Object.values(moduleOptions.screens || {})))
     })
   }
diff --git a/src/runtime/image.ts b/src/runtime/image.ts
index 505a78397..eca37fad6 100644
--- a/src/runtime/image.ts
+++ b/src/runtime/image.ts
@@ -1,4 +1,5 @@
 import defu from 'defu'
+import { hasProtocol, parseURL } from 'ufo'
 import type { ImageOptions, ImageSizesOptions, CreateImageOptions, ResolvedImage, MapToStatic, ImageCTX, $Img } from '../types/image'
 import { imageMeta } from './utils/meta'
 import { parseSize } from './utils'
@@ -98,6 +99,17 @@ function resolveImage (ctx: ImageCTX, input: string, options: ImageOptions): Res
   const { provider, defaults } = getProvider(ctx, options.provider || ctx.options.provider)
   const preset = getPreset(ctx, options.preset)
 
+  // Externalize remote images if domain does not match with `domains`
+  if (provider.validateDomains && hasProtocol(input)) {
+    const inputHost = parseURL(input).host
+    // Domains are normalized to hostname in module
+    if (!ctx.options.domains.find(d => d === inputHost)) {
+      return {
+        url: input
+      }
+    }
+  }
+
   const _options: ImageOptions = defu(options, preset, defaults)
   _options.modifiers = { ..._options.modifiers }
   const expectedFormat = _options.modifiers.format
diff --git a/src/runtime/providers/ipx.ts b/src/runtime/providers/ipx.ts
index ffe56880e..eecac935d 100644
--- a/src/runtime/providers/ipx.ts
+++ b/src/runtime/providers/ipx.ts
@@ -1,5 +1,5 @@
 import { ProviderGetImage } from 'src'
-import { joinURL, encodeQueryItem, encodePath, hasProtocol } from 'ufo'
+import { joinURL, encodeQueryItem, encodePath } from 'ufo'
 import { createOperationsGenerator } from '~image'
 
 const operationsGenerator = createOperationsGenerator({
@@ -16,7 +16,7 @@ const operationsGenerator = createOperationsGenerator({
   formatter: (key, val) => encodeQueryItem(key, val)
 })
 
-export const getImage: ProviderGetImage = (src, { modifiers = {}, baseURL = '/_ipx' } = {}, { options: { domains = [] } }) => {
+export const getImage: ProviderGetImage = (src, { modifiers = {}, baseURL = '/_ipx' } = {}) => {
   if (modifiers.width && modifiers.height) {
     modifiers.resize = `${modifiers.width}_${modifiers.height}`
     delete modifiers.width
@@ -25,15 +25,9 @@ export const getImage: ProviderGetImage = (src, { modifiers = {}, baseURL = '/_i
 
   const params = operationsGenerator(modifiers)
 
-  if (hasProtocol(src)) {
-    if (!domains.find((d: string) => src.startsWith(d))) {
-      return {
-        url: src
-      }
-    }
-  }
-
   return {
     url: joinURL(baseURL, encodePath(src) + (params ? '?' + params : ''))
   }
 }
+
+export const validateDomains = true
diff --git a/src/runtime/providers/vercel.ts b/src/runtime/providers/vercel.ts
index 4b91d043f..68e6b02a1 100644
--- a/src/runtime/providers/vercel.ts
+++ b/src/runtime/providers/vercel.ts
@@ -34,3 +34,5 @@ export const getImage: ProviderGetImage = (src, { modifiers, baseURL = '/_vercel
     })
   }
 }
+
+export const validateDomains = true
diff --git a/src/types/image.ts b/src/types/image.ts
index 30669cf79..5faf341f7 100644
--- a/src/types/image.ts
+++ b/src/types/image.ts
@@ -23,6 +23,7 @@ export type ProviderGetImage = (src: string, options: ImageOptions, ctx: ImageCT
 export interface ImageProvider {
   defaults?: any
   getImage: ProviderGetImage
+  validateDomains?: Boolean
 }
 
 export interface CreateImageOptions {
@@ -35,7 +36,7 @@ export interface CreateImageOptions {
   presets: { [name: string]: ImageOptions }
   provider: string
   screens?: Record<string, number>,
-  domains?: string[]
+  domains: string[]
 }
 
 export interface ImageInfo {