Below shows how the current system, as of 2022[update], works.
Level League(s) / Division(s) 1 12 Besta deild karla (Nationwide League) 12 clubs 2 12 1. deild karla (Nationwide League) 12 clubs 3 12 2. deild karla (Nationwide League) 12 clubs 4 12 3. deild karla (Nationwide League) 12 clubs 5 10 4. deild karla (Nationwide League) 10 clubs 18 5. deild karla (Nationwide League) 18 clubs divided in 2 series, 9 clubs each, as of 2023 Before 2023, only two teams were promoted from the fifth-tier 4. deild karla.
The top two teams from each group play in a knock-out competition (played home and away) with the final being one match determining the 4. deild champions.
Football Association of Iceland attempts to distribute the teams evenly between groups.
Clubs at all five levels are eligible for cup competitions.