diff --git a/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/AbstractExchangeParser.java b/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/AbstractExchangeParser.java
index 13b82e96..08f409eb 100644
--- a/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/AbstractExchangeParser.java
+++ b/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/AbstractExchangeParser.java
@@ -21,6 +21,7 @@ import org.springframework.beans.factory.support.AbstractBeanDefinition;
 import org.springframework.beans.factory.support.BeanDefinitionBuilder;
 import org.springframework.beans.factory.xml.AbstractSingleBeanDefinitionParser;
 import org.springframework.beans.factory.xml.ParserContext;
+import org.springframework.util.StringUtils;
 import org.springframework.util.xml.DomUtils;
 import org.w3c.dom.Element;
 
@@ -42,6 +43,8 @@ public abstract class AbstractExchangeParser extends AbstractSingleBeanDefinitio
 
 	protected static final String BINDING_QUEUE_ATTR = "queue";
 
+	protected static final String BINDING_EXCHANGE_ATTR = "exchange";
+
 	@Override
 	protected boolean shouldGenerateIdAsFallback() {
 		return true;
@@ -87,4 +90,20 @@ public abstract class AbstractExchangeParser extends AbstractSingleBeanDefinitio
 	protected abstract AbstractBeanDefinition parseBinding(String exchangeName, Element binding,
 			ParserContext parserContext);
 
+	protected void parseDestination(Element binding, ParserContext parserContext, BeanDefinitionBuilder builder) {
+		String queueAttribute = binding.getAttribute(BINDING_QUEUE_ATTR);
+		String exchangeAttribute = binding.getAttribute(BINDING_EXCHANGE_ATTR);
+		boolean hasQueueAttribute = StringUtils.hasText(queueAttribute);
+		boolean hasExchangeAttribute = StringUtils.hasText(exchangeAttribute);
+		if (!(hasQueueAttribute ^ hasExchangeAttribute)) {
+			parserContext.getReaderContext().error("Binding must have exactly one of 'queue' or 'exchange'", binding);
+		}
+		if (hasQueueAttribute) {
+			builder.addPropertyReference("destinationQueue", queueAttribute);
+		}
+		if (hasExchangeAttribute) {
+			builder.addPropertyReference("destinationExchange", exchangeAttribute);
+		}
+	}
+
 }
diff --git a/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/DirectExchangeParser.java b/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/DirectExchangeParser.java
index 13743515..a57f9450 100644
--- a/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/DirectExchangeParser.java
+++ b/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/DirectExchangeParser.java
@@ -40,7 +40,7 @@ public class DirectExchangeParser extends AbstractExchangeParser {
 	protected AbstractBeanDefinition parseBinding(String exchangeName, Element binding,
 			ParserContext parserContext) {
 		BeanDefinitionBuilder builder = BeanDefinitionBuilder.genericBeanDefinition(BindingFactoryBean.class);
-		builder.addPropertyReference("destinationQueue", binding.getAttribute(BINDING_QUEUE_ATTR));
+		parseDestination(binding, parserContext, builder);
 		builder.addPropertyValue("exchange", new TypedStringValue(exchangeName));
 		String bindingKey = binding.getAttribute(BINDING_KEY_ATTR);
 		if (!StringUtils.hasText(bindingKey)) {
diff --git a/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/FanoutExchangeParser.java b/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/FanoutExchangeParser.java
index abbcaedb..99ce8561 100644
--- a/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/FanoutExchangeParser.java
+++ b/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/FanoutExchangeParser.java
@@ -36,7 +36,7 @@ public class FanoutExchangeParser extends AbstractExchangeParser {
 	@Override
 	protected AbstractBeanDefinition parseBinding(String exchangeName, Element binding, ParserContext parserContext) {
 		BeanDefinitionBuilder builder = BeanDefinitionBuilder.genericBeanDefinition(BindingFactoryBean.class);
-		builder.addPropertyReference("destinationQueue", binding.getAttribute(BINDING_QUEUE_ATTR));
+		parseDestination(binding, parserContext, builder);
 		builder.addPropertyValue("exchange", new TypedStringValue(exchangeName));
 		builder.addPropertyValue("arguments", Collections.<String, Object>emptyMap());
 		return builder.getBeanDefinition();
diff --git a/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/HeadersExchangeParser.java b/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/HeadersExchangeParser.java
index d59d3627..6c5f6005 100644
--- a/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/HeadersExchangeParser.java
+++ b/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/HeadersExchangeParser.java
@@ -38,7 +38,7 @@ public class HeadersExchangeParser extends AbstractExchangeParser {
 	@Override
 	protected AbstractBeanDefinition parseBinding(String exchangeName, Element binding, ParserContext parserContext) {
 		BeanDefinitionBuilder builder = BeanDefinitionBuilder.genericBeanDefinition(BindingFactoryBean.class);
-		builder.addPropertyReference("destinationQueue", binding.getAttribute(BINDING_QUEUE_ATTR));
+		parseDestination(binding, parserContext, builder);
 		builder.addPropertyValue("exchange", new TypedStringValue(exchangeName));
 		ManagedMap<TypedStringValue, TypedStringValue> map = new ManagedMap<TypedStringValue, TypedStringValue>();
 		String key = binding.getAttribute("key");
diff --git a/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/TopicExchangeParser.java b/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/TopicExchangeParser.java
index 3a5b9eff..6554185e 100644
--- a/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/TopicExchangeParser.java
+++ b/spring-rabbit/src/main/java/org/springframework/amqp/rabbit/config/TopicExchangeParser.java
@@ -41,7 +41,7 @@ public class TopicExchangeParser extends AbstractExchangeParser {
 	@Override
 	protected AbstractBeanDefinition parseBinding(String exchangeName, Element binding, ParserContext parserContext) {
 		BeanDefinitionBuilder builder = BeanDefinitionBuilder.genericBeanDefinition(BindingFactoryBean.class);
-		builder.addPropertyReference("destinationQueue", binding.getAttribute(BINDING_QUEUE_ATTR));
+		parseDestination(binding, parserContext, builder);
 		builder.addPropertyValue("exchange", new TypedStringValue(exchangeName));
 		builder.addPropertyValue("routingKey", new TypedStringValue(binding.getAttribute(BINDING_PATTERN_ATTR)));
 		builder.addPropertyValue("arguments", Collections.<String, Object>emptyMap());
diff --git a/spring-rabbit/src/main/resources/org/springframework/amqp/rabbit/config/spring-rabbit-1.0.xsd b/spring-rabbit/src/main/resources/org/springframework/amqp/rabbit/config/spring-rabbit-1.0.xsd
index 7451bc89..46aac742 100644
--- a/spring-rabbit/src/main/resources/org/springframework/amqp/rabbit/config/spring-rabbit-1.0.xsd
+++ b/spring-rabbit/src/main/resources/org/springframework/amqp/rabbit/config/spring-rabbit-1.0.xsd
@@ -441,7 +441,7 @@
 		<xsd:sequence>
 			<xsd:element ref="binding-arguments" minOccurs="0" maxOccurs="1" />
 		</xsd:sequence>
-		<xsd:attribute name="queue" use="required">
+		<xsd:attribute name="queue" use="optional">
 			<xsd:annotation>
 				<xsd:documentation source="java:org.springframework.amqp.core.Queue"><![CDATA[
 				The bean name of the Queue to bind to this exchange.
@@ -453,6 +453,18 @@
 				</xsd:appinfo>
 			</xsd:annotation>
 		</xsd:attribute>
+		<xsd:attribute name="exchange" use="optional">
+			<xsd:annotation>
+				<xsd:documentation source="java:org.springframework.amqp.core.Exchange"><![CDATA[
+				The bean name of another exchange to bind to this exchange.
+				]]></xsd:documentation>
+				<xsd:appinfo>
+					<tool:annotation kind="ref">
+						<tool:expected-type type="org.springframework.amqp.core.Exchange" />
+					</tool:annotation>
+				</xsd:appinfo>
+			</xsd:annotation>
+		</xsd:attribute>
 	</xsd:complexType>
 
 	<xsd:element name="binding-arguments" type="mapType">
diff --git a/spring-rabbit/src/test/java/org/springframework/amqp/rabbit/config/RabbitNamespaceHandlerTests.java b/spring-rabbit/src/test/java/org/springframework/amqp/rabbit/config/RabbitNamespaceHandlerTests.java
index c9fb96fd..a5d2b0ab 100644
--- a/spring-rabbit/src/test/java/org/springframework/amqp/rabbit/config/RabbitNamespaceHandlerTests.java
+++ b/spring-rabbit/src/test/java/org/springframework/amqp/rabbit/config/RabbitNamespaceHandlerTests.java
@@ -80,7 +80,7 @@ public final class RabbitNamespaceHandlerTests {
 	public void testBindings() throws Exception {
 		Map<String, Binding> bindings = beanFactory.getBeansOfType(Binding.class);
 		// 4 for each exchange type
-		assertEquals(16, bindings.size());
+		assertEquals(17, bindings.size());
 	}
 	
 	@Test
diff --git a/spring-rabbit/src/test/resources/org/springframework/amqp/rabbit/config/RabbitNamespaceHandlerTests-context.xml b/spring-rabbit/src/test/resources/org/springframework/amqp/rabbit/config/RabbitNamespaceHandlerTests-context.xml
index a1ecb1b7..3c0bccf0 100644
--- a/spring-rabbit/src/test/resources/org/springframework/amqp/rabbit/config/RabbitNamespaceHandlerTests-context.xml
+++ b/spring-rabbit/src/test/resources/org/springframework/amqp/rabbit/config/RabbitNamespaceHandlerTests-context.xml
@@ -22,6 +22,7 @@
 			<binding queue="bar" pattern="bar.#" />
 			<binding queue="spam" pattern="spam.#"/>
 			<binding queue="bucket" pattern="bucket.#"/>
+			<binding exchange="direct-test" pattern="qux" />
 		</bindings>
 	</topic-exchange>