Three-times weekly services linking the Irish capital with Reykjavik will get under way "at the end of April".
Flights will last two-and-a-half hours, with fares leading in from €79pp (£67pp).
Based out of Keflavik International airport, Play currently operates a fleet of three Airbus A320 neo aircraft, flying to Stansted in the UK.
Its fleet will grow to six in the spring, when the carrier is looking to launch UK-US services, and 10 by spring 2023.
“It’s really enjoyable to add more destinations in Europe that will strengthen our route schedule," said Birgir Jonsson, Play chief executive.
"We are confident these destinations will boost Play’s operations and that our flights between Iceland and these cities will be popular among those living there."
Play will fly to 23 European destinations next year, with proposed new additions to its schedule including Brussels and Madrid.
