3615977 - SDA connection fails with error Cannot resolve host name '<virtual_hostanme>'

Unable to set up SDA connection between S/4 HANA on-premise system to HANA Cloud. The following error message is reported while trying to create remote source:

Error occurred while loading remote source information: SQL Error: Unable to connect remote source: [SAP AG][LIBODBCHDB SO][HDBODBC] Communication link failure;-10709 Connection failed (RTE:[89001] Cannot resolve host name '<virtual_host>' rc=-2: Name or service not known (i<virtual_host<:<virtual_post>))

SAP HANA Cloud 

SDA, S/4 HANA, ECS, RISE, on-premise, HANA Cloud, remote source, connectivity, proxy, cloud connector, error, hostname, connproxy, troubleshooting, adapter properties, scc location id, use_haas_socks_proxy , KBA , HAN-CLS-HC , HANA Cloud Services HANA Cloud , HAN-DB-SDA , SAP HANA Smart Data Access , Problem