Iceland's Ministry for Foreign Affairs contacted the US Embassy in Reykjavik after reports that former US Congressman Billy Long, nominated to serve as ambassador to Iceland, joked that Iceland could become the 52nd US state, public broadcaster RUV reported on Thursday.
Long reportedly made the comment during a Washington meeting with members of Congress, saying he would be the "governor" if Iceland were annexed, according to Politico.
His nomination to the ambassadorship has not yet been confirmed by the US Senate.
"The Ministry for Foreign Affairs has contacted the US Embassy in Iceland to examine the truthfulness of the alleged comments," the ministry said in a statement to public broadcaster RUV.
Neither Long nor the US administration has confirmed or denied the remarks.
The comments sparked public outrage in Iceland, with a petition urging Foreign Minister Thorgerdur Katrin Gunnarsdottir to reject Long as ambassador gathering more than 2,500 signatures.
The petition describes Long's words as "insulting to Iceland and Icelanders, who have had to fight for their freedom and have always been a friend of the United States."
The controversy comes amid heightened diplomatic tensions over Greenland, a self-governing Danish territory, which US President Donald Trump previously expressed interest in acquiring for national security reasons.