Thousands of small earthquakes have rattled the volcano, located deep beneath the Vatnajokull glacier, in the last week. Icelandic Meteorological Office vulcanologist Melissa Pfeffer said yesterday that seismic data indicated that an eruption had begun, with magma from the volcano melting ice within the glacier's Dyngjujokull icecap,
The remote area, 200 miles (320 km) east of the capital of Reykjavik, is uninhabited.
The Civil Protection Department said scientists flew over the ice cap yesterday afternoon but saw no visible signs of the eruption on the surface. Late Saturday the Met Office said there were "no signs of ongoing volcanic activity."
Icelandic authorities declared a no-fly zone of 100 nautical miles by 140 nautical miles around the eruption as a precaution, but did not shut down air space over most of the island nation in the North Atlantic.
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"All airports are open and flights are on schedule," said spokeswoman Olof Baldursdottir.
A 2010 eruption of Iceland's Eyjafjallajokul volcano produced an ash cloud that caused a week of international aviation chaos, with more than 100,000 flights cancelled.
Scientists were monitoring a hydrological station downstream from the volcano for flooding, a common result of volcanic eruptions in Iceland.
Pfeffer said the amount of ash produced by the new eruption would depend on the thickness of the ice.
"The thicker the ice, the more water there is, the more explosive it will be and the more ash-rich the eruption will be," she said.