diff --git a/monkey/monkey_island/cc/services/config.py b/monkey/monkey_island/cc/services/config.py
index 3215af091..10fbde66d 100644
--- a/monkey/monkey_island/cc/services/config.py
+++ b/monkey/monkey_island/cc/services/config.py
@@ -419,7 +419,7 @@ class ConfigService:
         ConfigService._remove_credentials_from_flat_config(config)
         ConfigService._format_payloads_from_flat_config(config)
         ConfigService._format_pbas_from_flat_config(config)
-        ConfigService._format_network_scan_from_flat_config(config)
+        ConfigService._format_propagation_from_flat_config(config)
 
     @staticmethod
     def _remove_credentials_from_flat_config(config: Dict):
@@ -464,9 +464,23 @@ class ConfigService:
         config.pop(flat_windows_command_field, None)
         config.pop(flat_windows_filename_field, None)
 
+    @staticmethod
+    def _format_propagation_from_flat_config(config: Dict):
+        formatted_propagation_config = {"network_scan": {}, "targets": {}}
+
+        formatted_propagation_config[
+            "network_scan"
+        ] = ConfigService._format_network_scan_from_flat_config(config)
+
+        formatted_propagation_config["targets"] = ConfigService._format_targets_from_flat_config(
+            config
+        )
+
+        config["propagation"] = formatted_propagation_config
+
     @staticmethod
     def _format_network_scan_from_flat_config(config: Dict):
-        formatted_network_scan_config = {"tcp": {}, "icmp": {}, "targets": {}}
+        formatted_network_scan_config = {"tcp": {}, "icmp": {}}
 
         formatted_network_scan_config["tcp"] = ConfigService._format_tcp_scan_from_flat_config(
             config
@@ -474,11 +488,8 @@ class ConfigService:
         formatted_network_scan_config["icmp"] = ConfigService._format_icmp_scan_from_flat_config(
             config
         )
-        formatted_network_scan_config[
-            "targets"
-        ] = ConfigService._format_scan_targets_from_flat_config(config)
 
-        config["network_scan"] = formatted_network_scan_config
+        return formatted_network_scan_config
 
     @staticmethod
     def _format_tcp_scan_from_flat_config(config: Dict):
@@ -519,7 +530,7 @@ class ConfigService:
         return formatted_icmp_scan_config
 
     @staticmethod
-    def _format_scan_targets_from_flat_config(config: Dict):
+    def _format_targets_from_flat_config(config: Dict):
         flat_blocked_ips_field = "blocked_ips"
         flat_inaccessible_subnets_field = "inaccessible_subnets"
         flat_local_network_scan_field = "local_network_scan"
diff --git a/monkey/tests/unit_tests/monkey_island/cc/services/test_config.py b/monkey/tests/unit_tests/monkey_island/cc/services/test_config.py
index 8537ee233..c10c77b42 100644
--- a/monkey/tests/unit_tests/monkey_island/cc/services/test_config.py
+++ b/monkey/tests/unit_tests/monkey_island/cc/services/test_config.py
@@ -95,6 +95,31 @@ def test_get_config_propagation_credentials_from_flat_config(flat_monkey_config)
     assert creds == expected_creds
 
 
+def test_format_config_for_agent__propagation(flat_monkey_config):
+    ConfigService.format_flat_config_for_agent(flat_monkey_config)
+
+    assert "propagation" in flat_monkey_config
+    assert "network_scan" in flat_monkey_config["propagation"]
+    assert "targets" in flat_monkey_config["propagation"]
+
+
+def test_format_config_for_agent__propagation_targets(flat_monkey_config):
+    expected_targets = {
+        "blocked_ips": ["192.168.1.1", "192.168.1.100"],
+        "inaccessible_subnets": ["10.0.0.0/24", "10.0.10.0/24"],
+        "local_network_scan": True,
+        "subnet_scan_list": ["192.168.1.50", "192.168.56.0/24", "10.0.33.0/30"],
+    }
+
+    ConfigService.format_flat_config_for_agent(flat_monkey_config)
+
+    assert flat_monkey_config["propagation"]["targets"] == expected_targets
+    assert "blocked_ips" not in flat_monkey_config
+    assert "inaccessible_subnets" not in flat_monkey_config
+    assert "local_network_scan" not in flat_monkey_config
+    assert "subnet_scan_list" not in flat_monkey_config
+
+
 def test_format_config_for_agent__network_scan(flat_monkey_config):
     expected_network_scan_config = {
         "tcp": {
@@ -118,22 +143,13 @@ def test_format_config_for_agent__network_scan(flat_monkey_config):
         "icmp": {
             "timeout_ms": 1000,
         },
-        "targets": {
-            "blocked_ips": ["192.168.1.1", "192.168.1.100"],
-            "inaccessible_subnets": ["10.0.0.0/24", "10.0.10.0/24"],
-            "local_network_scan": True,
-            "subnet_scan_list": ["192.168.1.50", "192.168.56.0/24", "10.0.33.0/30"],
-        },
     }
     ConfigService.format_flat_config_for_agent(flat_monkey_config)
 
-    assert "network_scan" in flat_monkey_config
-    assert flat_monkey_config["network_scan"] == expected_network_scan_config
+    assert "propagation" in flat_monkey_config
+    assert "network_scan" in flat_monkey_config["propagation"]
+    assert flat_monkey_config["propagation"]["network_scan"] == expected_network_scan_config
 
     assert "tcp_scan_timeout" not in flat_monkey_config
     assert "tcp_target_ports" not in flat_monkey_config
     assert "ping_scan_timeout" not in flat_monkey_config
-    assert "blocked_ips" not in flat_monkey_config
-    assert "inaccessible_subnets" not in flat_monkey_config
-    assert "local_network_scan" not in flat_monkey_config
-    assert "subnet_scan_list" not in flat_monkey_config