This is a bizarre moment a protesting asylum seeker dangled above MPs in the world's oldest parliament in Iceland in a protest over new immigration laws.

Footage from the parliament, or Althing, which originated with the Vikings, shows one demonstrator stripped to the waist and clinging to a pillar as security staff try to pull him back over a balcony.

Local media reported that he threatened to jump on top of the MPs who were voting on Justice Minister Gudrun Hafsteinsdottir's new bill on asylum seekers on March 4.

A second demonstrator is seen in the background being restrained by a parliamentary guard on the first floor.

As the stripped protester shouts and screams, baffled MPs look up as he is finally pulled to safety and led away as the clip ends.

Icelandic Parliament president Birgir Armannsson, 55, told local media: 'It happens sometimes that there are loud voices in the parliament, but usually people have responded well when they have been asked to be quiet.'

'Our people work closely with the police on what preparations are needed and how to respond to incidents.'

Asmundur Fridriksson, MP for the Independence Party, added: 'The Icelandic asylum seekers made noise, shouting and calling from parliamentary platforms at the beginning of the debate on changes to the ForeignNationals Act.

'As a result, parliamentary meetings have been postponed for a few minutes, with people scurrying around to catch up after the delays.'

The Althing, or 'General Meeting', is the oldest surviving parliament in the world and dates back to Iceland's Viking era in 930 AD.