Several emerging applications such as storage area networks, multimedia, video, and digital services demand high bandwidth. Although optical networks are deployed to provide high bandwidth at reduced costs, they are not flexible and not efficiently utilized. Such applications require end-to-end delivery of information and flexible bandwidth allocation; therefore provisioning in optical networks need to be dynamic, flexible and consider provisioning in multiple domains. This paper presents a novel dynamic path computation algorithm for optical multi-domain networks. This algorithm updates the inter-domain paths and domainpsilas egress node dynamically after visiting an intermediate domain between the source and the destination. Simulation results show that the performance of the proposed algorithm is better than existing source routing algorithm for provisioning circuits in optical multi-domain networks.