The frozen food retailer has taken 7,500 sq ft in phase two of Ask Developments' project in Urmston town centre.
Iceland joins Aldi and Quality Save as tenants at Eden Square.
Ask Developments said phase two of Eden Square is now 85% pre-let and this latest letting leaves 3,000 sq ft of space available in the second phase.
Ask is currently concluding detailed discussions with the main contractor for a start date on site.
Leon Guyett, development director at Ask Developments, said: "We have been in dialogue with Iceland for some time and have worked together to adapt the plans in order to accommodate the supermarket into the scheme. Iceland is a fantastic addition both to Eden Square and to the wider shopping offer in Urmston."
Ask revised plans for phase two of Eden Square in order to respond to current economic conditions and negotiations with retailers requiring larger stores than can be accommodated in phase one.
The number of residential units was reduced to 12 from 80 and the retail, of 42,000 sq ft has been reconfigured to allow for larger floorplates.
Mike Cornes, executive councillor at Trafford Council, said: "These lettings add significant weight to Urmston as a retail destination will and complement those shopping facilities already operating in phase one, which include a mix of local and national retailers; Costa Coffee, Thorntons, Boots, Greggs, Hallmark, HD Studio and William Hill are all trading. I look forward to seeing work progressing and Iceland, Aldi and Quality Save joining the existing phase one retailers at Eden Square."
Savills and Tushingham Moore are joint letting agents on the scheme. Property consultant Drivers Jonas Deloitte acted as planning consultants.
Details of the rental agreement was not disclosed.