Things you need:
1. A Linux box
2. Two network adapters that connect to different networks that you wish to route.

How:
Enable IP Forwarding

By default all modern Linux distributions will have IP Forwarding disabled. Use the following methods to enable and configure IP Forwarding.

Check if IP Forwarding is enabled:
We have to query the sysctl kernel value net.ipv4.ip_forward to see if forwarding is enabled or not:

Using sysctl:

sysctl net.ipv4.ip\_forward
net.ipv4.ip\_forward = 0  

Using the /proc system:

cat /proc/sys/net/ipv4/ip\_forward
0  

If the above output is ‘0’ IP Forwarding is not enabled.

To enable IP Forwarding on the fly:
As with any sysctl kernel parameters we can change the value of net.ipv4.ip_forward on the fly (without rebooting the system):

sysctl -w net.ipv4.ip\_forward=1

or

echo 1 > /proc/sys/net/ipv4/ip\_forward

The above setting is changed instantly; however the setting will not persist on rebooting the system.

To permanently enable IP Forwarding:

Add the following line to the file /etc/sysctl.conf
net.ipv4.ip_forward = 1

To enable the changes made in sysctl.conf, run the command:

sysctl -p /etc/sysctl.conf

Alternatively, On Red Hat based systems this is also enabled when restarting the network service:

service network restart

On Debian/Ubuntu systems this can be also done restarting the procps service:

/etc/init.d/procps.sh restart

After making the above changes, check if IP Forwarding is infact enabled:

Using sysctl:

sysctl net.ipv4.ip\_forward
net.ipv4.ip\_forward = 1  

Using the /proc system:

cat /proc/sys/net/ipv4/ip\_forward
1  

If the result is 1 then the Linux system will start forwarding IP packets even if they are not destined to a specific network interface.

Additionally configure iptables to forward packets from your internal network eth1 to your external network, eth0

/sbin/iptables -t nat -A POSTROUTING -o eth0 -j MASQUERADE  
/sbin/iptables -A FORWARD -i eth0 -o eth1 -m state --state RELATED,ESTABLISHED -j ACCEPT  
/sbin/iptables -A FORWARD -i eth1 -o eth0 -j ACCEPT