Both nations are at risk of suffering relegation to League C and they meet again just over two months on from Strakarnir okkar beating the Brave Falcons 2-0 in Reykjavik.
Match preview
Robert Prosinecki was appointed as Montenegro head coach in February and won his first two games in charge a month later against Belarus and North Macedonia (both friendlies), but his side have since endured a disappointing run of form.
Indeed, the Brave Falcons have lost each of their last six matches across all competitions, including all four fixtures in the Nations League in which they have failed to score on three occasions.
After losing their aforementioned opener away against Iceland, Montenegro have since fallen to three successive defeats by a one-goal margin, most recently losing 1-0 away to both Turkey and Wales in October.
Prosinecki's side sit rock bottom of League B Group 4 without a single point, and they know that they must win their remaining two fixtures against Iceland and Turkey - both on home soil - if they are to stand a chance of avoiding automatic relegation to League C.
Ranked 75th in the world by FIFA, Montenegro will reminisce about their only previous home encounter with Iceland back in February 2012 when they secured a 2-1 friendly victory courtesy of a brace from Stevan Jovetic.
Since beating Montenegro 2-0 in their opening Nations League match, Iceland have failed to win their last three games in League B Group 4, picking up just one point in the process.
Strakarnir okkar suffered home and away defeats to Turkey by an aggregate score of 7-3, either side of a 2-2 home draw with Wales last month in which they came from two goals down in the final 20 minutes to rescue a point.
Age Hareide's side currently sit third in their Nations League group, occupying the relegation playoff position, and there are four points separating them from both Montenegro at the bottom and second-placed Wales, who they face next Tuesday.
Many will be surprised to learn that Iceland's aforementioned win against Montenegro in September represents their only triumph in 18 Nations League matches (D5 L12) since the tournament was formed six years ago.
Iceland have, however, only lost one of their last five Nations League home games and only one of their last six in front of their own supporters across all competitions, although that solitary defeat was in their most recent home fixture against Turkey (4-2).
Montenegro Nations League form:
L
L
L
L
Montenegro form (all competitions):
L
L
L
L
L
L
Iceland Nations League form:
W
L
D
L
Iceland form (all competitions):
W
L
W
L
D
L
Team News
Montenegro trio Milutin Osmajic, Ilija Vukotic and Slobodan Rubezic have all been omitted from this month's squad, while midfield duo Stefan Loncar and Milos Brnovic have both been recalled.
All-time leading goalscorer Jovetic (36 goals) is just four appearances away from drawing level with Fatos Beciraj (86 caps) as his nation's most-capped player and the Omonia Nicosia forward is expected to start as captain.
Lazio's Adam Marusic is set to start in defence, while the likes of Igor Vujacic, Marko Jankovic, Driton Camaj and Stefan Mugosa will also be looking to force their way into the first XI.
As for Iceland, Mikael Anderson, Hlynur Freyr Karlsson, Kolbeinn Finnsson and Daniel Leo Gretarsson has pulled out of the squad through injury, while the likes of Gylfi Sigurdsson, Arnor Sigurdsson and Runar Alex Runarsson have not been selected.
Ninety-seven-cap Johann Berg Gudmundsson is set to start in midfield, while Orri Oskarsson - who scored in the reverse fixture against Montenegro and in Iceland's most recent match with Turkey - could be joined in attack by Andri Gudjohnsen, the son of ex-Chelsea and Barcelona forward Eidur Gudjohnsen.
Montenegro possible starting lineup:
Mijatovic; Marusic, Vujacic, Sipcic, Radunovic; Bakic, Jankovic; Camaj, Jovetic, Krstovic; Mugosa
Iceland possible starting lineup:
Valdimarsson; Sampsted, Gunnarsson, Ingason, Tomasson; Thorsteinsson, Gudmundsson, Traustason, Ellertsson; Oskarsson, Gudjohnsen