I had the problem with Ubuntu 16.04 out-of-the-box. After a full week of
12 hour days trying to resolve this issue, I was finally about to fix
it. I made a longer post about it here.

http://askubuntu.com/questions/829204/dns-routing-fails-for-vpn-
connections-on-ubuntu-16-04-out-of-the-box

Here's the abbreviated version.

Step 1: Goto GitHub and clone the following repo to your home folder:
https://github.com/masterkorp/openvpn-update-resolv-conf

Step 2: Move the .sh files from your cloned rep to the /etc/openvpn folder:
sudo chmod +x *.sh && sudo mv *.sh /etc/openvpn

Step 3: Run the following command to install new packages for DNS:
sudo apt-get install openresolv nscd unbound

Step 4: Append the following line to your OpenVPN Client Configuration
files (*.ovpn or *.conf). I did this after the configuration directives
but before my inline certs (<ca> tag):

script-security 2
up "/etc/openvpn/update-resolv-conf.sh /etc/openvpn/update-systemd-network.sh"
down "/etc/openvpn/update-resolv-conf.sh /etc/openvpn/update-systemd-network.sh"

This should resolve the DNS resolution problem.

Dmitry has the right steps, but I needed the 2nd script for my system to
update.

Works like my 14.04 system... before I upgraded to 16.04...

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You received this bug notification because you are a member of Ubuntu
Touch seeded packages, which is subscribed to network-manager in Ubuntu.
https://bugs.launchpad.net/bugs/1211110

Title:
  network manager openvpn dns push data not updating system DNS
  addresses

Status in network-manager package in Ubuntu:
  Incomplete
Status in openvpn package in Ubuntu:
  Incomplete

Bug description:
  [Triage Notes]

  This bug can no longer make progress. Please see comment 50 for
  details and further instructions.

  [Original Description]

  When IPv4 Method is set to Automatic VPN, DNS address recieved from
  OpenVPN server do not update resolv.conf.

  This can be achieved when using a standard openvpn config file by
  adding the lines:

  script-security 2
  up /etc/openvpn/update-resolv-conf
  down /etc/openvpn/update-resolv-conf

  In Network-manager there seems to be no option to run connection
  specific scripts and the DNS data from the server is ignored.

  Ubuntu 13.04
  Network-manager 0.9.8.0-0ubuntu6

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/network-manager/+bug/1211110/+subscriptions

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