We propose a communication protocol, called the virtual circuit deflection (VCD) protocol, which combines some of the individual characteristics of virtual circuit switching and deflection routing. An advantage of the VCD protocol over previous (datagram) deflection schemes is that deflections in the former occur on a per session basis (or a per subsession basis, if sessions need to be split to find adequate capacity on the outgoing links), while in the latter, they occur on a per packet basis. This makes packet resequencing at the destination considerably easier to accomplish in the VCD protocol than in datagram deflection schemes. The VCD protocol exploits the storage arising from the high bandwidth-delay product of optical fibers to provide lossless communication with little buffering at the switches and without the need for advance reservations. This makes it particularly suitable for networks that use optical switching, where buffers are expensive to implement with current optical technology. We present a simple implementation of the VCD protocol for such networks, which requires only limited buffering, accomplished through the use of a minimal number of optical delay lines. We also analyze the performance of the protocol for the Manhattan Street network topology by using new analytical models. In particular, we examine the effect of the traffic load and the network size on the throughput and the length of the paths followed by the sessions, and compare the analytical results obtained with corresponding simulation results. The results indicate that the VCD protocol is efficient under both light and heavy traffic conditions, especially when the link capacities are large compared to the basic rate of individual sessions, as is expected to be the case in future multigigabit networks.