Akureyri (äˈkürāˌrē) [key], city (1993 pop. 14,799), N Iceland, at the head of the Eyjafjörður. The second largest city of Iceland, it is a fishing, commercial, and industrial center, producing iron, wooden, and woolen goods. It was settled c.A.D. 900 and chartered in 1786. The modern Lutheran Church is a landmark, and there is a university (est. 1988).