diff --git a/data/templates/system/cloud_init_networking.j2 b/data/templates/system/cloud_init_networking.j2
new file mode 100644
index 0000000000..52cce72f8f
--- /dev/null
+++ b/data/templates/system/cloud_init_networking.j2
@@ -0,0 +1,9 @@
+network:
+  version: 2
+  ethernets:
+{% for iface in ifaces_list %}
+    {{ iface['name'] }}:
+      dhcp4: true
+      match:
+        macaddress: "{{ iface['mac'] }}"
+{% endfor %}
diff --git a/debian/vyos-1x.postinst b/debian/vyos-1x.postinst
index ddc189508e..6653cd585f 100644
--- a/debian/vyos-1x.postinst
+++ b/debian/vyos-1x.postinst
@@ -122,5 +122,8 @@ if test -f /etc/pam.d/frr; then
     fi
 fi
 
+# Enable Cloud-init pre-configuration service
+systemctl enable vyos-config-cloud-init.service
+
 # Generate API GraphQL schema
 /usr/libexec/vyos/services/api/graphql/generate/generate_schema.py
diff --git a/src/system/vyos-config-cloud-init.py b/src/system/vyos-config-cloud-init.py
new file mode 100755
index 0000000000..0a6c1f9bc5
--- /dev/null
+++ b/src/system/vyos-config-cloud-init.py
@@ -0,0 +1,169 @@
+#!/usr/bin/env python3
+#
+# Copyright (C) 2023 VyOS maintainers and contributors
+#
+# This program is free software; you can redistribute it and/or modify
+# it under the terms of the GNU General Public License version 2 or later as
+# published by the Free Software Foundation.
+#
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+import logging
+from concurrent.futures import ProcessPoolExecutor
+from pathlib import Path
+from subprocess import run, TimeoutExpired
+from sys import exit
+
+from psutil import net_if_addrs, AF_LINK
+from systemd.journal import JournalHandler
+from yaml import safe_load
+
+from vyos.template import render
+
+# define a path to the configuration file and template
+config_file = '/etc/cloud/cloud.cfg.d/20_vyos_network.cfg'
+template_file = 'system/cloud_init_networking.j2'
+
+
+def check_interface_dhcp(iface_name: str) -> bool:
+    """Check DHCP client can work on an interface
+
+    Args:
+        iface_name (str): interface name
+
+    Returns:
+        bool: check result
+    """
+    dhclient_command: list[str] = [
+        'dhclient', '-4', '-1', '-q', '--no-pid', '-sf', '/bin/true', iface_name
+    ]
+    check_result = False
+    # try to get an IP address
+    # we use dhclient behavior here to speedup detection
+    # if dhclient receives a configuration and configure an interface
+    # it switch to background
+    # If no - it will keep running in foreground
+    try:
+        run(['ip', 'l', 'set', iface_name, 'up'])
+        run(dhclient_command, timeout=5)
+        check_result = True
+    except TimeoutExpired:
+        pass
+    finally:
+        run(['ip', 'l', 'set', iface_name, 'down'])
+
+    logger.info(f'DHCP server was found on {iface_name}: {check_result}')
+    return check_result
+
+
+def dhclient_cleanup() -> None:
+    """Clean up after dhclients
+    """
+    run(['killall', 'dhclient'])
+    leases_file: Path = Path('/var/lib/dhcp/dhclient.leases')
+    leases_file.unlink(missing_ok=True)
+    logger.debug('cleaned up after dhclients')
+
+
+def dict_interfaces() -> dict[str, str]:
+    """Return list of available network interfaces except loopback
+
+    Returns:
+        list[str]: a list of interfaces
+    """
+    interfaces_dict: dict[str, str] = {}
+    ifaces = net_if_addrs()
+    for iface_name, iface_addresses in ifaces.items():
+        # we do not need loopback interface
+        if iface_name == 'lo':
+            continue
+        # check other interfaces for MAC addresses
+        for iface_addr in iface_addresses:
+            if iface_addr.family == AF_LINK and iface_addr.address:
+                interfaces_dict[iface_name] = iface_addr.address
+                continue
+
+    logger.debug(f'found interfaces: {interfaces_dict}')
+    return interfaces_dict
+
+
+def need_to_check() -> bool:
+    """Check if we need to perform DHCP checks
+
+    Returns:
+        bool: check result
+    """
+    # if cloud-init config does not exist, we do not need to do anything
+    ci_config_vyos = Path('/etc/cloud/cloud.cfg.d/20_vyos_custom.cfg')
+    if not ci_config_vyos.exists():
+        logger.info(
+            'No need to check interfaces: Cloud-init config file was not found')
+        return False
+
+    # load configuration file
+    try:
+        config = safe_load(ci_config_vyos.read_text())
+    except:
+        logger.error('Cloud-init config file has a wrong format')
+        return False
+
+    # check if we have in config configured option
+    # vyos_config_options:
+    #   network_preconfigure: true
+    if not config.get('vyos_config_options', {}).get('network_preconfigure'):
+        logger.info(
+            'No need to check interfaces: Cloud-init config option "network_preconfigure" is not set'
+        )
+        return False
+
+    return True
+
+
+if __name__ == '__main__':
+    # prepare logger
+    logger = logging.getLogger(__name__)
+    logger.addHandler(JournalHandler(SYSLOG_IDENTIFIER=Path(__file__).name))
+    logger.setLevel(logging.INFO)
+
+    # we need to give udev some time to rename all interfaces
+    # this is placed before need_to_check() call, because we are not always
+    # need to preconfigure cloud-init, but udev always need to finish its work
+    # before cloud-init start
+    run(['udevadm', 'settle'])
+    logger.info('udev finished its work, we continue')
+
+    # do not perform any checks if this is not required
+    if not need_to_check():
+        exit()
+
+    # get list of interfaces and check them
+    interfaces_dhcp: list[dict[str, str]] = []
+    interfaces_dict: dict[str, str] = dict_interfaces()
+
+    with ProcessPoolExecutor(max_workers=len(interfaces_dict)) as executor:
+        iface_check_results = [{
+            'dhcp': executor.submit(check_interface_dhcp, iface_name),
+            'append': {
+                'name': iface_name,
+                'mac': iface_mac
+            }
+        } for iface_name, iface_mac in interfaces_dict.items()]
+
+    dhclient_cleanup()
+
+    for iface_check_result in iface_check_results:
+        if iface_check_result.get('dhcp').result():
+            interfaces_dhcp.append(iface_check_result.get('append'))
+
+    # render cloud-init config
+    if interfaces_dhcp:
+        logger.debug('rendering cloud-init network configuration')
+        render(config_file, template_file, {'ifaces_list': interfaces_dhcp})
+
+    exit()
diff --git a/src/systemd/vyos-config-cloud-init.service b/src/systemd/vyos-config-cloud-init.service
new file mode 100644
index 0000000000..ba6f90e6dc
--- /dev/null
+++ b/src/systemd/vyos-config-cloud-init.service
@@ -0,0 +1,19 @@
+[Unit]
+Description=Pre-configure Cloud-init
+DefaultDependencies=no
+Requires=systemd-remount-fs.service
+Requires=systemd-udevd.service
+Wants=network-pre.target
+After=systemd-remount-fs.service
+After=systemd-udevd.service
+Before=cloud-init-local.service
+
+[Service]
+Type=oneshot
+ExecStart=/usr/libexec/vyos/system/vyos-config-cloud-init.py
+TimeoutSec=120
+KillMode=process
+StandardOutput=journal+console
+
+[Install]
+WantedBy=cloud-init-local.service