Iceland's midfielder Gylfi Sigurdsson shoots a penalty and scores during the UEFA Euro 2016 qualifying round football match between Netherlands and Iceland at the Arena Stadium, on September 3, 2015 © Getty Images

The hosts were quickest off the starting blocks and threatened in the ninth minute when Arjen Robben beat a number of players and fired from 30 yards, but Hannes Halldorsson stood firm and saved the attempt.

Robben, named as captain for the first time, fashioned another chance on the quarter-hour mark, a towering header that was frantically blocked and hacked away.

The Bayern Munich winger continued to be at the heart of his side's forward drives, with a 25-yard free kick that whistled past the post in the 18th minute and a strike following a mazy run that was charged down.

Holland, however, suffered a setback just after the half-hour mark when Bruno Martins Indi was shown a straight red following a strong challenge and, despite a host of protests, the decision stood.

Iceland began the brighter of the two sides after the restart and were given the chance to open the scoring from the spot when Gregory van der Wiel's foul in the box prompted the referee to award them a penalty.

Netherlands' Arjen Robben (R) shoots the ball during the Euro 2016 qualifying round football match between Netherlands and Iceland at the Arena Stadium, on September 3, 2015 © Getty Images

Sigurdsson stepped up and duly converted, sending the ball beyond the reach of Jasper Cillessen and inside the left post.

The away side then came within a whisker of doubling their lead just minutes later when Johann Berg Gudmundsson surged forward and fired a ferocious shot from 25 yards.

However, the effort crashed against the left post, and despite Kolbeinn Sigthorsson getting to the loose ball inside the six-yard box, he lashed his rebound wide.

Danny Blind's charges launched a late rally but could not deny Iceland as the island nation celebrated three precious points that keep them top of Group A.

The Netherlands, meanwhile, continue to languish in third place and eight points off the top, putting their chances of automatic qualification in severe jeopardy.