Inside a Coast Guard helicopter. Photo by Páll Stefánsson.
According to the police in Blönduós, a search team and a marksman are on board the helicopter.
Images of footprints believed to belong to the bear, taken by RÚV cameraman Heiðar Mar Björnsson this morning, can be viewed here.
Police have asked people to alert them if they spot the polar bear and have asked the tourists who reported seeing the animal yesterday to contact them on 455-2666.
Click here to read about other instances of polar bears coming to shore in Iceland.