The mackerel war broke out earlier this year after Iceland announced it would catch three times as many mackerel as the EU recommends, with the Faroes also vowing to exceed their quota.
Talks between the EU, Norway, Iceland and the Faroe Islands were taking place in Oslo with a view to agreeing a joint management plan for the mackerel stock in 2011, but broke down last week without a deal with Iceland in place. Negotiations with the Faroes continue, with talks to resume in Copenhagen on 9 December.
Ian Gatt, chief executive of the Scottish Pelagic Fishermen's Association, said Iceland's decision not to agree to a deal was "bitterly disappointing" and meant the country was effectively setting its own mackerel quota for 2011.
"We believe joint management involving all coastal states is essential to ensure this valuable resource is fished sustainably. It is a great pity Iceland does not seem to recognise the importance of integrated and sensible management."