A new identity-based key agreement protocol designed to operate on thenetworklayerispresented. Endpoint addresses, namelyIP and MAC addresses, areusedaspublickeystoauthenticatethe communicationdevices involved ina key agreement, which allows us to piggyback much of the security overhead for key management to the existing network infrastructure. The proposed approach offers solutions to some of the open problems of identity-based key agreement schemes when applied to the network layer, namely multi-domain key generation, key distribution, multi-domainpublicparameterdistribution, inter-domainkeyagreement and network address translation traversal.