We propose a novel scheme for interconnection of multiple high-speed (2.5/10 Gb/s) ATM streams through an optical WDM network, with a total network capacity of up to 8 Tb/s. The proposed architecture is based on placing the optical WDM portion of the network in a physically small area, i.e., one central office, or in a single rack. This helps to avoid technological obstacles such as power budget, dispersion, and synchronization limitations, and optical output buffering. The interconnection is an ATM packet switched network, and provides optical contention resolution. We show that the implementation of such a network is possible using currently available optoelectronic technology. Simulation results are presented, indicating network throughput of up to 100%.