"The bear is in the north of Iceland near the town of Saudarkrokkur," Rax Axelsson, a photographer with Iceland's newspaper of reference, Morgunbladid, told AFP.
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"The bear is living off of eggs and birds" and does not appear to be hungry, he added.
The bear was discovered by 12-year-old Karen Heljateynsdottir not far from her farm as she was out walking her dog on Monday.
"She saw something white and thought it was a plastic bag, and then she realised it was a polar bear. She ran home and she said she has never run so fast in her life," Axelsson said.