Implementing the fast-responding multi-layer service network (MLSN) functionality will allow the IP/MPLS service network logical topology and Optical Virtual Network topology to be reconfigured dynamically according to the traffic pattern on the network. Direct links can be created or removed in the logical IP/MPLS service network topology, when either extra capacity in MLSN core is needed or existing capacity in core is no longer required. Reconfiguring the logical and virtual network topologies constitute a new manner by which Traffic Engineering (TE) can solve or avoid network congestion problems and service degradations. As both IP and optical network layers are involved, this is called Multi-layer Traffic Engineering. We proposed border model based MLSN architecture in [5]. In this paper, we define the realization of Multi-Layer TE functions using Path Computation Element (PCE) for Border model based MLSN. It defines nodal requirements for multi-layer TE. Requirements of communication protocol between PCC (Path Computation Client) and PCE is introduced. It presents Virtual Network Topology (VNT) scenarios and steps involved along with examples for PCE-based VNT reconfiguration triggered by network failure, where VNT is a set of different layer's network resource accumulation.