RÚV confirmed in late December 2013 that they would be participating in the contest under a new delegation. After allocating a budget for the contest, the broadcaster also announced that they would host a new national selection known as Söngvakeppni Sjónvarpsins and that it was due to start in January 2014.
Söngvakeppni Sjónvarpsins 07[]
RÚV confirmed that 5 acts would compete in the national selection. The voting was to be split between online voting, televoting, and jury voting. The countries that were selected as jury members were Bulgaria, Cyprus, Iceland and Norway. All other countries could vote as televoters.
Iceland was allocated to perform in the first half of semi-final one, in position #4, after Monaco and before Poland. Iceland managed to qualify to the grand final, and it was later revealed that the country placed 3rd with 98 points. In the final, Iceland performed 10th, after Ukraine and before Denmark. At the close of the voting, Iceland placed 10th. It was later revealed that Iceland finished in 10th place in both the juries and televote.