diff --git a/lnwire/channel_update.go b/lnwire/channel_update.go
index 6d70f32c4..f43f11ef2 100644
--- a/lnwire/channel_update.go
+++ b/lnwire/channel_update.go
@@ -8,6 +8,23 @@ import (
 	"github.com/roasbeef/btcd/chaincfg/chainhash"
 )
 
+// ChanUpdateFlag is a btifield that signals various options concerning a
+// particular channel edge. Each bit is to be examined in order to determine
+// how the ChannelUpdate message is to be interpreted.
+type ChanUpdateFlag uint16
+
+const (
+	// ChanUpdateDirection indicates the direction of a channel update. If
+	// this bit is set to 0 if Node1 (the node with the "smaller" Node ID)
+	// is updating the channel, and to 1 otherwise.
+	ChanUpdateDirection ChanUpdateFlag = 1 << iota
+
+	// ChanUpdateDisabled is a bit that indicates if the channel edge
+	// selected by the ChanUpdateDirection bit is to be treated as being
+	// disabled.
+	ChanUpdateDisabled
+)
+
 // ChannelUpdate message is used after channel has been initially announced.
 // Each side independently announces its fees and minimum expiry for HTLCs and
 // other parameters. Also this message is used to redeclare initially setted
@@ -31,10 +48,13 @@ type ChannelUpdate struct {
 	// the last-received.
 	Timestamp uint32
 
-	// Flags least-significant bit must be set to 0 if the creating node
+	// Flags is a bitfield that describes additional meta-data concerning
+	// how the update is to be interpreted. Currently, the
+	// least-significant bit must be set to 0 if the creating node
 	// corresponds to the first node in the previously sent channel
-	// announcement and 1 otherwise.
-	Flags uint16
+	// announcement and 1 otherwise. If the second bit is set, then the
+	// channel is set to be disabled.
+	Flags ChanUpdateFlag
 
 	// TimeLockDelta is the minimum number of blocks this node requires to
 	// be added to the expiry of HTLCs. This is a security parameter
diff --git a/lnwire/lnwire.go b/lnwire/lnwire.go
index 705ab358c..ce9ead460 100644
--- a/lnwire/lnwire.go
+++ b/lnwire/lnwire.go
@@ -98,6 +98,12 @@ func writeElement(w io.Writer, element interface{}) error {
 		if _, err := w.Write(b[:]); err != nil {
 			return err
 		}
+	case ChanUpdateFlag:
+		var b [2]byte
+		binary.BigEndian.PutUint16(b[:], uint16(e))
+		if _, err := w.Write(b[:]); err != nil {
+			return err
+		}
 	case ErrorCode:
 		var b [2]byte
 		binary.BigEndian.PutUint16(b[:], uint16(e))
@@ -406,6 +412,12 @@ func readElement(r io.Reader, element interface{}) error {
 			return err
 		}
 		*e = binary.BigEndian.Uint16(b[:])
+	case *ChanUpdateFlag:
+		var b [2]byte
+		if _, err := io.ReadFull(r, b[:]); err != nil {
+			return err
+		}
+		*e = ChanUpdateFlag(binary.BigEndian.Uint16(b[:]))
 	case *ErrorCode:
 		var b [2]byte
 		if _, err := io.ReadFull(r, b[:]); err != nil {
diff --git a/lnwire/lnwire_test.go b/lnwire/lnwire_test.go
index 021181ad4..f78e2c4d1 100644
--- a/lnwire/lnwire_test.go
+++ b/lnwire/lnwire_test.go
@@ -427,7 +427,7 @@ func TestLightningWireProtocol(t *testing.T) {
 				Signature:       testSig,
 				ShortChannelID:  NewShortChanIDFromInt(uint64(r.Int63())),
 				Timestamp:       uint32(r.Int31()),
-				Flags:           uint16(r.Int31()),
+				Flags:           ChanUpdateFlag(r.Int31()),
 				TimeLockDelta:   uint16(r.Int31()),
 				HtlcMinimumMsat: MilliSatoshi(r.Int63()),
 				BaseFee:         uint32(r.Int31()),