He later coached German club SC Magdeburg, where he won the Bundesliga and the EHF Champions League, the Icelandic men's national team and German club THW Kiel, where he won six Bundesliga, six DHB-Pokal and two EHF Champions League titles.

[8] He returned to KR in 1988 for one season and later joined Spanish club Bidasosa Irún in 1989, where he won the Copa del Rey during a two-year stint.

Alfreð was capped 190 times and scored 542 goals for the Icelandic national handball team.

[5] Alfreð won the Icelandic Championships in 1997 and became the coach of German club VfL Hameln that same year.

[11] From 2006 to 2008, he coached both the Icelandic men's national team and German club VfL Gummersbach.

Alfreð led the national team to a fourth-place finish at the 2024 European Championship in Germany and won the silver medal in the men's handball tournament at the 2024 Summer Olympics.