Goals from Marcus Allback (two), Anders Svensson, Olof Mellberg and Markus Rosenberg did the damage for the hosts, who move two points clear of former pace-setters Northern Ireland.

Lars Lagerback's men could further stretch that lead on Friday pending the result of UEFA's inquiry into their match against Denmark last weekend, which was abandoned when a fan attacked the referee.

Sweden were without suspended forward Johan Elmander, who scored twice in the aborted match with the Danes, while Iceland had even bigger problems in attack with star striker Eidur Gudjohnsen also sitting out a ban.

And the visitors struggled from the start with the Swedes quickly taking a grip on proceedings.

The first goal came after just 11 minutes courtesy of Allback. Arni Gautur Arason did well to parry an initial strike from Tobias Linderoth but the ball only went as far as Rosenberg, who played the ball on to Allback.

This time Arason had no answer as the FC Copenhagen striker directed his half-volley into the top right corner.

Sweden continued to have the run of the ball but without really threatening until three minutes before the interval when Svensson doubled their advantage.

Christian Wilhelmsson's corner caused panic in the Icelandic defence, allowing Svensson to collect the ball and rifle home from 12 yards.

The hosts then made it 3-0 on the stroke of half-time thanks to Mellberg, who powered home Niclas Alexandersson's cross with a little help from the post.

The interval brought little respite for Iceland, who found themselves 4-0 down just five minutes after the restart.

Rosenberg was the latest player to get in on the act, beating the offside trap before lobbing Arason from 14 yards out.

And the Icelandic defence was breached again a minute later by Allback, who made the most of a moment of confusion in the area when several players had come to a standstill after believing Luxembourg referee Alain Hamer had blown his whistle for a handball.