A method for locality-based selection and routing of network traffic to producer network functions (NFs) includes registering, by producer NFs, locality information with a network function registration function (NRF). The method further includes configuring, for each of a plurality of consumer NFs, locality preference rules. The method further includes detecting, by one of the consumer NFs, a need for a service provided by a plurality of different producer NFs, at least some of which are located in data centers with different localities. The method further includes selecting, by or on behalf of the one consumer NF and using the locality information registered for the producer NFs and the locality preference rules, a producer NF for providing the service to the one consumer NF.