The route will commence on November 1, with fares starting at £34.90 one way.
Three weekly flights will depart on a Tuesday, Thursday and Saturday, intended to encourage long weekend breaks.
The new route will be operated by Norwegian’s new 186-seat aircraft which feature free inflight Wi-Fi.
Thomas Ramdahl, chief commercial officer at Norwegian, said: “Our growth in the UK continues and we are excited to offer a new direct service from London Gatwick to Iceland.
“A firm favourite with Brits due to its nature landscape and outdoor activities, Iceland is a fantastic choice for a winter break.”
Norwegian’s new service to Iceland will be the airlines fourth new European route to launch in the UK this winter.
Two new routes take off from Manchester to Gran Canaria on the October 30 and to Tenerife on the November 1, as well as a new direct link to Finnish Lapland from Gatwick to Rovaniemi, commencing on December 2.
