Service-function chaining using extended service-function chain proxy for service-function offload

An extended service-function chain (SFC) proxy is hosted on a network node and connected to a service path formed by one or more network nodes hosting a chain of service-functions applied to packets traversing the service path. The packets each include a service header having a service path identifier and a service index. A packet of a traffic flow destined for a service-function is received from the service path and sent to the service-function. An indication to offload the traffic flow is received from the service-function. The indication is stored in a flow table having entries each identifying a respective traffic flow. A subsequent packet of the traffic flow is received from the service path. The flow table is searched for the indication to offload the traffic flow. Upon finding the indication, the service-function is bypassed, and the subsequent packet is forwarded along the service path.