In order to secure the private networks in today's fast-paced business world firewalls are being deployed. Based on the policy adopted, firewall either accepts or rejects the incoming or outgoing network packets by checking them. In this paper, the protocol to optimize the cross-domain firewall policies so as to boost the network performance will be explained. The process of protocol optimization involves removal of redundant rules between the two firewalls by extracting the common data. This data will further be encrypted, compressed and sent to other network by compressing the data file.