diff --git a/org.springframework.integration/src/main/java/org/springframework/integration/config/xml/GatewayParser.java b/org.springframework.integration/src/main/java/org/springframework/integration/config/xml/GatewayParser.java
index 3fe403d1dc..c6d1d8f26b 100644
--- a/org.springframework.integration/src/main/java/org/springframework/integration/config/xml/GatewayParser.java
+++ b/org.springframework.integration/src/main/java/org/springframework/integration/config/xml/GatewayParser.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2002-2008 the original author or authors.
+ * Copyright 2002-2009 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -37,6 +37,11 @@ public class GatewayParser extends AbstractSimpleBeanDefinitionParser {
 		"default-request-channel", "default-reply-channel", "message-mapper"
 	};
 
+	private static String[] innerAttributes = new String[] {
+		"request-channel", "reply-channel", "request-timeout", "reply-timeout"
+	};
+
+
 	@Override
 	protected String getBeanClassName(Element element) {
 		return IntegrationNamespaceUtils.BASE_PACKAGE + ".gateway.GatewayProxyFactoryBean";
@@ -45,11 +50,28 @@ public class GatewayParser extends AbstractSimpleBeanDefinitionParser {
 	@Override
 	protected boolean isEligibleAttribute(String attributeName) {
 		return !ObjectUtils.containsElement(referenceAttributes, attributeName)
+				&& !ObjectUtils.containsElement(innerAttributes, attributeName)
 				&& super.isEligibleAttribute(attributeName);
 	}
 
 	@Override
 	protected void postProcess(BeanDefinitionBuilder builder, Element element) {
+		if ("chain".equals(element.getParentNode().getLocalName())) {
+			this.postProcessInnerGateway(builder, element);
+		}
+		else {
+			this.postProcessGateway(builder, element);
+		}
+	}
+
+	private void postProcessInnerGateway(BeanDefinitionBuilder builder, Element element) {
+		IntegrationNamespaceUtils.setReferenceIfAttributeDefined(builder, element, "request-channel", "defaultRequestChannel");
+		IntegrationNamespaceUtils.setReferenceIfAttributeDefined(builder, element, "reply-channel", "defaultReplyChannel");
+		IntegrationNamespaceUtils.setValueIfAttributeDefined(builder, element, "request-timeout", "defaultRequestTimeout");
+		IntegrationNamespaceUtils.setValueIfAttributeDefined(builder, element, "reply-timeout", "defaultReplyTimeout");
+	}
+
+	private void postProcessGateway(BeanDefinitionBuilder builder, Element element) {
 		for (String attributeName : referenceAttributes) {
 			IntegrationNamespaceUtils.setReferenceIfAttributeDefined(builder, element, attributeName);
 		}
diff --git a/org.springframework.integration/src/main/resources/org/springframework/integration/config/xml/spring-integration-2.0.xsd b/org.springframework.integration/src/main/resources/org/springframework/integration/config/xml/spring-integration-2.0.xsd
index 4b4d6e4450..f53a11032a 100644
--- a/org.springframework.integration/src/main/resources/org/springframework/integration/config/xml/spring-integration-2.0.xsd
+++ b/org.springframework.integration/src/main/resources/org/springframework/integration/config/xml/spring-integration-2.0.xsd
@@ -350,6 +350,36 @@
 		</xsd:complexType>
 	</xsd:element>
 
+	<xsd:complexType name="innerGatewayType">
+		<xsd:annotation>
+			<xsd:documentation>
+	Defines a Messaging Gateway to be used within a chain.
+			</xsd:documentation>
+		</xsd:annotation>
+		<xsd:attribute name="request-channel" type="xsd:string">
+			<xsd:annotation>
+				<xsd:appinfo>
+					<tool:annotation kind="ref">
+						<tool:expected-type
+								type="org.springframework.integration.core.MessageChannel" />
+					</tool:annotation>
+				</xsd:appinfo>
+			</xsd:annotation>
+		</xsd:attribute>
+		<xsd:attribute name="reply-channel" type="xsd:string">
+			<xsd:annotation>
+				<xsd:appinfo>
+					<tool:annotation kind="ref">
+						<tool:expected-type
+								type="org.springframework.integration.core.MessageChannel" />
+					</tool:annotation>
+				</xsd:appinfo>
+			</xsd:annotation>
+		</xsd:attribute>
+		<xsd:attribute name="request-timeout" type="xsd:string" />
+		<xsd:attribute name="reply-timeout" type="xsd:string" />
+	</xsd:complexType>
+
 	<xsd:element name="inbound-channel-adapter" type="methodInvokingChannelAdapterType">
 		<xsd:annotation>
 			<xsd:documentation>
@@ -706,7 +736,7 @@
 						<xsd:element ref="router" />
 						<xsd:element ref="delayer" />
 						<xsd:element ref="chain" />
-						<xsd:element ref="gateway" />
+						<xsd:element name="gateway" type="innerGatewayType" />
 						<xsd:element name="poller" type="innerPollerType" />
 					</xsd:choice>
 				</xsd:extension>
diff --git a/org.springframework.integration/src/test/java/org/springframework/integration/gateway/GatewayInvokingMessaheHandlerTests-context.xml b/org.springframework.integration/src/test/java/org/springframework/integration/gateway/GatewayInvokingMessageHandlerTests-context.xml
similarity index 87%
rename from org.springframework.integration/src/test/java/org/springframework/integration/gateway/GatewayInvokingMessaheHandlerTests-context.xml
rename to org.springframework.integration/src/test/java/org/springframework/integration/gateway/GatewayInvokingMessageHandlerTests-context.xml
index bf49ea743a..188f21cac0 100644
--- a/org.springframework.integration/src/test/java/org/springframework/integration/gateway/GatewayInvokingMessaheHandlerTests-context.xml
+++ b/org.springframework.integration/src/test/java/org/springframework/integration/gateway/GatewayInvokingMessageHandlerTests-context.xml
@@ -8,7 +8,7 @@
 	<si:gateway id="simpleGateway"
 				default-request-channel="inputA" 
 				default-reply-channel="inputB"
-				service-interface="org.springframework.integration.gateway.GatewayInvokingMessaheHandlerTests$SimpleGateway"/>
+				service-interface="org.springframework.integration.gateway.GatewayInvokingMessageHandlerTests$SimpleGateway"/>
 
 	<si:publish-subscribe-channel id="inputA" />
 	<si:publish-subscribe-channel id="inputB" />
@@ -19,9 +19,9 @@
 			<si:header name="foo" value="foo" />
 		</si:header-enricher>
 		<si:service-activator>
-			<bean class="org.springframework.integration.gateway.GatewayInvokingMessaheHandlerTests$SimpleService" />
+			<bean class="org.springframework.integration.gateway.GatewayInvokingMessageHandlerTests$SimpleService" />
 		</si:service-activator>
-		<si:gateway default-request-channel="inputC"/>  
+		<si:gateway request-channel="inputC"/>  
 	</si:chain>
 	
 	
@@ -31,7 +31,7 @@
 			<si:header name="name" value="oleg" />
 		</si:header-enricher>
 		<si:service-activator>
-			<bean class="org.springframework.integration.gateway.GatewayInvokingMessaheHandlerTests$SimpleService" />
+			<bean class="org.springframework.integration.gateway.GatewayInvokingMessageHandlerTests$SimpleService" />
 		</si:service-activator>
 	</si:chain>
 
diff --git a/org.springframework.integration/src/test/java/org/springframework/integration/gateway/GatewayInvokingMessaheHandlerTests.java b/org.springframework.integration/src/test/java/org/springframework/integration/gateway/GatewayInvokingMessageHandlerTests.java
similarity index 73%
rename from org.springframework.integration/src/test/java/org/springframework/integration/gateway/GatewayInvokingMessaheHandlerTests.java
rename to org.springframework.integration/src/test/java/org/springframework/integration/gateway/GatewayInvokingMessageHandlerTests.java
index d86c274f87..503b2f7fc5 100644
--- a/org.springframework.integration/src/test/java/org/springframework/integration/gateway/GatewayInvokingMessaheHandlerTests.java
+++ b/org.springframework.integration/src/test/java/org/springframework/integration/gateway/GatewayInvokingMessageHandlerTests.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2002-2008 the original author or authors.
+ * Copyright 2002-2009 the original author or authors.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -13,32 +13,31 @@
  * See the License for the specific language governing permissions and
  * limitations under the License.
  */
+
 package org.springframework.integration.gateway;
 
 import junit.framework.Assert;
 
 import org.junit.Test;
 import org.junit.runner.RunWith;
+
 import org.springframework.beans.factory.annotation.Autowired;
 import org.springframework.beans.factory.annotation.Qualifier;
 import org.springframework.integration.channel.SubscribableChannel;
 import org.springframework.integration.core.Message;
-import org.springframework.integration.message.MessageDeliveryException;
 import org.springframework.integration.message.MessageHandler;
-import org.springframework.integration.message.MessageHandlingException;
-import org.springframework.integration.message.MessageRejectedException;
 import org.springframework.integration.message.StringMessage;
 import org.springframework.test.context.ContextConfiguration;
 import org.springframework.test.context.junit4.SpringJUnit4ClassRunner;
 
 /**
- * TODO - insert COMMENT
  * @author Oleg Zhurakousky
  * @since 2.0
  */
 @ContextConfiguration
 @RunWith(SpringJUnit4ClassRunner.class)
-public class GatewayInvokingMessaheHandlerTests {
+public class GatewayInvokingMessageHandlerTests {
+
 	@Autowired
 	@Qualifier("inputA")
 	SubscribableChannel channel;
@@ -52,11 +51,9 @@ public class GatewayInvokingMessaheHandlerTests {
 	SubscribableChannel output;
 
 	@Test
-	public void validateGatewayInTheChainViaChannel(){	
+	public void validateGatewayInTheChainViaChannel() {
 		output.subscribe(new MessageHandler() {
-			public void handleMessage(Message<?> message)
-					throws MessageRejectedException, MessageHandlingException,
-					MessageDeliveryException {
+			public void handleMessage(Message<?> message) {
 				Assert.assertEquals("echo:echo:hello", message.getPayload());
 				Assert.assertEquals("foo", message.getHeaders().get("foo"));
 				Assert.assertEquals("oleg", message.getHeaders().get("name"));
@@ -64,12 +61,11 @@ public class GatewayInvokingMessaheHandlerTests {
 		});
 		channel.send(new StringMessage("hello"));
 	}
+
 	@Test
-	public void validateGatewayInTheChainViaAnotherGateway(){	
+	public void validateGatewayInTheChainViaAnotherGateway() {	
 		output.subscribe(new MessageHandler() {
-			public void handleMessage(Message<?> message)
-					throws MessageRejectedException, MessageHandlingException,
-					MessageDeliveryException {
+			public void handleMessage(Message<?> message) {
 				Assert.assertEquals("echo:echo:hello", message.getPayload());
 				Assert.assertEquals("foo", message.getHeaders().get("foo"));
 				Assert.assertEquals("oleg", message.getHeaders().get("name"));
@@ -78,14 +74,15 @@ public class GatewayInvokingMessaheHandlerTests {
 		String result = gateway.sendRecieve("hello");
 		Assert.assertEquals("echo:echo:hello", result);
 	}
-	
-	public static interface SimpleGateway{
+
+	public static interface SimpleGateway {
 		public String sendRecieve(String str);
 	}
-	
+
 	public static class SimpleService {
-		public String echo(String str){
+		public String echo(String str) {
 			return "echo:" + str;
 		}
 	}
+
 }