--- a/mnet/xmlrpc/client.php
+++ b/mnet/xmlrpc/client.php
@@ -359,7 +359,6 @@ class mnet_xmlrpc_client {
      * @return cURL handle - the almost-ready-to-send http request
      */
     function prepare_http_request ($mnet_peer) {
+       global $CFG;
         $this->uri = $mnet_peer->wwwroot . $mnet_peer->application->xmlrpc_server_url;

         // Initialize request the target URL
@@ -368,39 +367,9 @@ class mnet_xmlrpc_client {
         curl_setopt($httprequest, CURLOPT_RETURNTRANSFER, true);
         curl_setopt($httprequest, CURLOPT_POST, true);
         curl_setopt($httprequest, CURLOPT_USERAGENT, 'Moodle');
+        curl_setopt($httprequest, CURLOPT_HTTPHEADER, array("Content-Type: text/xml charset=UTF-8", "Expect:"));
-        curl_setopt($httprequest, CURLOPT_HTTPHEADER, array("Content-Type: text/xml charset=UTF-8"));
         curl_setopt($httprequest, CURLOPT_SSL_VERIFYPEER, false);
         curl_setopt($httprequest, CURLOPT_SSL_VERIFYHOST, 0);
+
+       // check for proxy
+       if (!empty($CFG->proxyhost) and !is_proxybypass($uri)) {
+               // SOCKS supported in PHP5 only
+               if (!empty($CFG->proxytype) and ($CFG->proxytype == 'SOCKS5')) {
+                       if (defined('CURLPROXY_SOCKS5')) {
+                               curl_setopt($httprequest, CURLOPT_PROXYTYPE, CURLPROXY_SOCKS5);
+                       } else {
+                               curl_close($httprequest);
+                               print_error( 'socksnotsupported','mnet' );
+                       }
+               }
+
+               curl_setopt($httprequest, CURLOPT_HTTPPROXYTUNNEL, false);
+
+               if (empty($CFG->proxyport)) {
+                       curl_setopt($httprequest, CURLOPT_PROXY, $CFG->proxyhost);
+               } else {
+                       curl_setopt($httprequest, CURLOPT_PROXY, $CFG->proxyhost.':'.$CFG->proxyport);
+               }
+
+               if (!empty($CFG->proxyuser) and !empty($CFG->proxypassword)) {
+                       curl_setopt($httprequest, CURLOPT_PROXYUSERPWD, $CFG->proxyuser.':'.$CFG->proxypassword);
+                       if (defined('CURLOPT_PROXYAUTH')) {
+                               // any proxy authentication if PHP 5.1
+                               curl_setopt($httprequest, CURLOPT_PROXYAUTH, CURLAUTH_BASIC | CURLAUTH_NTLM);
+                       }
+               }
+       }
+
         return $httprequest;
     }
 }