diff --git a/client/cmd/up.go b/client/cmd/up.go
index e03b7e4dc..5f7b049eb 100644
--- a/client/cmd/up.go
+++ b/client/cmd/up.go
@@ -2,6 +2,7 @@ package cmd
 
 import (
 	"context"
+	"github.com/wiretrustee/wiretrustee/iface"
 	"time"
 
 	"github.com/cenkalti/backoff/v4"
@@ -71,7 +72,7 @@ func createEngineConfig(key wgtypes.Key, config *internal.Config, peerConfig *mg
 		WgAddr:         peerConfig.Address,
 		IFaceBlackList: iFaceBlackList,
 		WgPrivateKey:   key,
-		WgPort:         internal.WgPort,
+		WgPort:         iface.DefaultWgPort,
 	}
 
 	if config.PreSharedKey != "" {
diff --git a/client/internal/engine.go b/client/internal/engine.go
index f68e01d02..19f79b8fc 100644
--- a/client/internal/engine.go
+++ b/client/internal/engine.go
@@ -31,8 +31,6 @@ const (
 	PeerConnectionTimeoutMin = 30000 // ms
 )
 
-const WgPort = 51820
-
 // EngineConfig is a config for the Engine
 type EngineConfig struct {
 	WgPort      int
diff --git a/client/internal/peer/conn.go b/client/internal/peer/conn.go
index 6fed5b0ae..f75a612f5 100644
--- a/client/internal/peer/conn.go
+++ b/client/internal/peer/conn.go
@@ -2,6 +2,7 @@ package peer
 
 import (
 	"context"
+	"github.com/wiretrustee/wiretrustee/iface"
 	"golang.zx2c4.com/wireguard/wgctrl"
 	"net"
 	"sync"
@@ -222,7 +223,14 @@ func (conn *Conn) Open() error {
 		return err
 	}
 
-	log.Infof("connected to peer %s [laddr <-> raddr] [%s <-> %s]", conn.config.Key, remoteConn.LocalAddr().String(), remoteConn.RemoteAddr().String())
+	if conn.proxy.Type() == proxy.TypeNoProxy {
+		host, _, _ := net.SplitHostPort(remoteConn.LocalAddr().String())
+		rhost, _, _ := net.SplitHostPort(remoteConn.RemoteAddr().String())
+		// direct Wireguard connection
+		log.Infof("directly connected to peer %s [laddr <-> raddr] [%s:%d <-> %s:%d]", conn.config.Key, host, iface.DefaultWgPort, rhost, iface.DefaultWgPort)
+	} else {
+		log.Infof("connected to peer %s [laddr <-> raddr] [%s <-> %s]", conn.config.Key, remoteConn.LocalAddr().String(), remoteConn.RemoteAddr().String())
+	}
 
 	// wait until connection disconnected or has been closed externally (upper layer, e.g. engine)
 	select {
@@ -235,16 +243,65 @@ func (conn *Conn) Open() error {
 	}
 }
 
+// useProxy determines whether a direct connection (without a go proxy) is possible
+// There are 3 cases: one of the peers has a public IP or both peers are in the same private network
+// Please note, that this check happens when peers were already able to ping each other using ICE layer.
+func shouldUseProxy(pair *ice.CandidatePair) bool {
+	remoteIP := net.ParseIP(pair.Remote.Address())
+	myIp := net.ParseIP(pair.Local.Address())
+	remoteIsPublic := IsPublicIP(remoteIP)
+	myIsPublic := IsPublicIP(myIp)
+
+	//one of the hosts has a public IP
+	if remoteIsPublic && pair.Remote.Type() == ice.CandidateTypeHost {
+		return false
+	}
+	if myIsPublic && pair.Local.Type() == ice.CandidateTypeHost {
+		return false
+	}
+
+	if pair.Local.Type() == ice.CandidateTypeHost && pair.Remote.Type() == ice.CandidateTypeHost {
+		if !remoteIsPublic && !myIsPublic {
+			//both hosts are in the same private network
+			return false
+		}
+	}
+
+	return true
+}
+
+// IsPublicIP indicates whether IP is public or not.
+func IsPublicIP(ip net.IP) bool {
+	if ip.IsLoopback() || ip.IsLinkLocalUnicast() || ip.IsLinkLocalMulticast() || ip.IsPrivate() {
+		return false
+	}
+	return true
+}
+
 // startProxy starts proxying traffic from/to local Wireguard and sets connection status to StatusConnected
 func (conn *Conn) startProxy(remoteConn net.Conn) error {
 	conn.mu.Lock()
 	defer conn.mu.Unlock()
 
-	conn.proxy = proxy.NewWireguardProxy(conn.config.ProxyConfig)
-	err := conn.proxy.Start(remoteConn)
+	var pair *ice.CandidatePair
+	pair, err := conn.agent.GetSelectedCandidatePair()
 	if err != nil {
 		return err
 	}
+
+	useProxy := shouldUseProxy(pair)
+	var p proxy.Proxy
+	if useProxy {
+		p = proxy.NewWireguardProxy(conn.config.ProxyConfig)
+	} else {
+		p = proxy.NewNoProxy(conn.config.ProxyConfig)
+	}
+	conn.proxy = p
+	err = p.Start(remoteConn)
+	if err != nil {
+		return err
+	}
+
 	conn.status = StatusConnected
 
 	return nil
diff --git a/client/internal/proxy/dummy.go b/client/internal/proxy/dummy.go
index bce657d2a..ebd7cd68f 100644
--- a/client/internal/proxy/dummy.go
+++ b/client/internal/proxy/dummy.go
@@ -66,3 +66,7 @@ func (p *DummyProxy) Start(remoteConn net.Conn) error {
 
 	return nil
 }
+
+func (p *DummyProxy) Type() Type {
+	return TypeDummy
+}
diff --git a/client/internal/proxy/noproxy.go b/client/internal/proxy/noproxy.go
new file mode 100644
index 000000000..7f9cae600
--- /dev/null
+++ b/client/internal/proxy/noproxy.go
@@ -0,0 +1,49 @@
+package proxy
+
+import (
+	log "github.com/sirupsen/logrus"
+	"github.com/wiretrustee/wiretrustee/iface"
+	"net"
+)
+
+// NoProxy is used when there is no need for a proxy between ICE and Wireguard.
+// This is possible in either of these cases:
+// - peers are in the same local network
+// - one of the peers has a public static IP (host)
+// NoProxy will just update remote peer with a remote host and fixed Wireguard port (r.g. 51820).
+// In order NoProxy to work, Wireguard port has to be fixed for the time being.
+type NoProxy struct {
+	config Config
+}
+
+func NewNoProxy(config Config) *NoProxy {
+	return &NoProxy{config: config}
+}
+
+func (p *NoProxy) Close() error {
+	// noop
+	return nil
+}
+
+// Start just updates Wireguard peer with the remote IP and default Wireguard port
+func (p *NoProxy) Start(remoteConn net.Conn) error {
+
+	log.Debugf("using NoProxy while connecting to peer %s", p.config.RemoteKey)
+	addr, err := net.ResolveUDPAddr("udp", remoteConn.RemoteAddr().String())
+	if err != nil {
+		return err
+	}
+	addr.Port = iface.DefaultWgPort
+	err = p.config.WgInterface.UpdatePeer(p.config.RemoteKey, p.config.AllowedIps, DefaultWgKeepAlive,
+		addr, p.config.PreSharedKey)
+
+	if err != nil {
+		return err
+	}
+
+	return nil
+}
+
+func (p *NoProxy) Type() Type {
+	return TypeNoProxy
+}
diff --git a/client/internal/proxy/proxy.go b/client/internal/proxy/proxy.go
index 5bf07927d..a856ab1e6 100644
--- a/client/internal/proxy/proxy.go
+++ b/client/internal/proxy/proxy.go
@@ -10,6 +10,14 @@ import (
 
 const DefaultWgKeepAlive = 25 * time.Second
 
+type Type string
+
+const (
+	TypeNoProxy   Type = "NoProxy"
+	TypeWireguard Type = "Wireguard"
+	TypeDummy     Type = "Dummy"
+)
+
 type Config struct {
 	WgListenAddr string
 	RemoteKey    string
@@ -22,4 +30,5 @@ type Proxy interface {
 	io.Closer
 	// Start creates a local remoteConn and starts proxying data from/to remoteConn
 	Start(remoteConn net.Conn) error
+	Type() Type
 }
diff --git a/client/internal/proxy/wireguard.go b/client/internal/proxy/wireguard.go
index c7325a71f..a8609cb18 100644
--- a/client/internal/proxy/wireguard.go
+++ b/client/internal/proxy/wireguard.go
@@ -122,3 +122,7 @@ func (p *WireguardProxy) proxyToLocal() {
 		}
 	}
 }
+
+func (p *WireguardProxy) Type() Type {
+	return TypeWireguard
+}
diff --git a/iface/iface.go b/iface/iface.go
index 1ba5b1813..4eb40a026 100644
--- a/iface/iface.go
+++ b/iface/iface.go
@@ -9,6 +9,7 @@ import (
 
 const (
 	DefaultMTU = 1280
+	DefaultWgPort = 51820
 )
 
 // WGIface represents a interface instance