The Food Standards Agency (FSA) said the presence of the plastic makes the £3 product unsafe to eat.
The popular pack of 60 chicken dippers is being recalled – meaning anyone who has bought the product should not consume them.
Any best before date code of the pack should be returned to the supermarket.
Iceland is set to display point of sale notices in all its stores selling the product.
“Taste just the same as the branded equivalent”
Reviewer of chicken dippers product
They will explain why it’s being recalled and tell them to return it if they have already bought the dippers.
Packs can be returned to the store from where it was bought for a full refund.
The product is listed as “currently unavailable” on Iceland’s website.
It has a decent four-star rating with the dippers popular with reviewers.
One said: “Taste just the same as the branded equivalent.
“Swapped to make a saving and its paid off ever since, wouldn’t go back to others now.”
This comes as Iceland earlier this year recalled batches of garlic bread due to it not mentioning milk, a common allergen, as an ingredient.
Lidl recalled its Kania salt and pepper shakers earlier this year, over concerns it could contain glass.
Asda in April recalled cereal bars over fears of salmonella contamination.
Some of its £1.98 cranberry and nut bars were taken off the shelves “as a precautionary measure” in case they contain the bacteria.
They have a best before date of September 2019 and a barcode of 515717208672.