The KSI says EA's economic offer of 15, 000 US dollars (￡11, 501) for his or her inclusion was below their own expectations.
Iceland, who knocked England outside of Euro 2016 in July, made a counter offer that they say was not accepted by EA sports game for Fifa 17 Coins.
"They are the versions buying these rights and in addition they almost want it at no cost, " said KSI us president Geir Thorsteinsson.
"The performance at the Euros show that we are quite a beneficial team and many would want to play with our group. It's sad for the players - but the criticism should be towards EA Sports. "
The fee that EA pays teams within the game covers the by using trademarks and image protection under the law.
"I really feel if were giving away rights, or offering rights, it has to become proper negotiations and honest fees. " added Thorsteinsson.
"I didn't feel until this was done in a fair and open manner. "
The BBC has questioned EA fifa 17 cash for comment.
Iceland, who are ranked 27th on this planet, have not featured in previous editions from the game, but were hopeful to getting into latest version after their cost the quarter-finals of the European Championship this summer.
A total of 47 men's international sides, including all of the home nations, will feature.
India, who are 148th in the world, are the lowest ranked national side from the game.
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