diff --git a/runtime/kubernetes/kubernetes.go b/runtime/kubernetes/kubernetes.go
index eabdb4b8..293597a5 100644
--- a/runtime/kubernetes/kubernetes.go
+++ b/runtime/kubernetes/kubernetes.go
@@ -270,9 +270,9 @@ func (k *kubernetes) Create(s *runtime.Service, opts ...runtime.CreateOption) er
 	if len(options.Type) == 0 {
 		options.Type = k.options.Type
 	}
-	if len(k.options.Source) > 0 {
-		s.Source = k.options.Source
-	}
+
+	// determine the full source for this service
+	options.Source = k.sourceForService(s.Name)
 
 	service := newService(s, options)
 
@@ -329,7 +329,8 @@ func (k *kubernetes) List() ([]*runtime.Service, error) {
 func (k *kubernetes) Update(s *runtime.Service) error {
 	// create new kubernetes micro service
 	service := newService(s, runtime.CreateOptions{
-		Type: k.options.Type,
+		Type:   k.options.Type,
+		Source: k.sourceForService(s.Name),
 	})
 
 	// update build time annotation
@@ -432,3 +433,15 @@ func NewRuntime(opts ...runtime.Option) runtime.Runtime {
 		client:  client,
 	}
 }
+
+// sourceForService determines the nested package name for github
+// e.g src: docker.pkg.github.com/micro/services an srv: users/api
+// would become docker.pkg.github.com/micro/services/users-api
+func (k *kubernetes) sourceForService(name string) string {
+	if !strings.HasPrefix(k.options.Source, "docker.pkg.github.com") {
+		return k.options.Source
+	}
+
+	formattedName := strings.ReplaceAll(name, "/", "-")
+	return fmt.Sprintf("%v/%v", k.options.Source, formattedName)
+}
diff --git a/runtime/kubernetes/service.go b/runtime/kubernetes/service.go
index 60fb31a5..72fcc636 100644
--- a/runtime/kubernetes/service.go
+++ b/runtime/kubernetes/service.go
@@ -34,9 +34,9 @@ func newService(s *runtime.Service, c runtime.CreateOptions) *service {
 	kservice := client.NewService(name, version, c.Type)
 	kdeploy := client.NewDeployment(name, version, c.Type)
 
-	if len(s.Source) > 0 {
+	if len(c.Source) > 0 {
 		for i := range kdeploy.Spec.Template.PodSpec.Containers {
-			kdeploy.Spec.Template.PodSpec.Containers[i].Image = s.Source
+			kdeploy.Spec.Template.PodSpec.Containers[i].Image = c.Source
 			kdeploy.Spec.Template.PodSpec.Containers[i].Command = []string{}
 			kdeploy.Spec.Template.PodSpec.Containers[i].Args = []string{name}
 		}
diff --git a/runtime/options.go b/runtime/options.go
index 197f3d7f..ab73a02e 100644
--- a/runtime/options.go
+++ b/runtime/options.go
@@ -53,6 +53,8 @@ type CreateOptions struct {
 	Type string
 	// Retries before failing deploy
 	Retries int
+	// Source of the service
+	Source string
 }
 
 // ReadOptions queries runtime services
@@ -72,6 +74,13 @@ func CreateType(t string) CreateOption {
 	}
 }
 
+// CreateSource sets the source of service to create
+func CreateSource(t string) CreateOption {
+	return func(o *CreateOptions) {
+		o.Source = t
+	}
+}
+
 // WithCommand specifies the command to execute
 func WithCommand(args ...string) CreateOption {
 	return func(o *CreateOptions) {
diff --git a/runtime/service/service.go b/runtime/service/service.go
index c46c5ba4..f7e3e97a 100644
--- a/runtime/service/service.go
+++ b/runtime/service/service.go
@@ -35,6 +35,11 @@ func (s *svc) Create(svc *runtime.Service, opts ...runtime.CreateOption) error {
 		o(&options)
 	}
 
+	// set the default source from MICRO_RUNTIME_SOURCE
+	if len(svc.Source) == 0 {
+		svc.Source = s.options.Source
+	}
+
 	// runtime service create request
 	req := &pb.CreateRequest{
 		Service: &pb.Service{
diff --git a/util/kubernetes/client/util.go b/util/kubernetes/client/util.go
index 83e17b11..747ac9cb 100644
--- a/util/kubernetes/client/util.go
+++ b/util/kubernetes/client/util.go
@@ -91,6 +91,8 @@ func CertsFromPEM(pemCerts []byte) ([]*x509.Certificate, error) {
 func Format(v string) string {
 	// to lower case
 	v = strings.ToLower(v)
+	// / to dashes
+	v = strings.ReplaceAll(v, "/", "-")
 	// dots to dashes
 	v = strings.ReplaceAll(v, ".", "-")
 	// limit to 253 chars