Iceland's remarkable rise has been rewarded with a place among Europe's top teams in UEFA's inaugural Nations League which kicks off next September.
League C will contain one group of three teams and three groups of four sides; League D will be formed by four groups of four teams.
The format of the UEFA Nations League will feature promotion and relegation and sees the 55 European national teams divided into four leagues in accordance with UEFA's national association coefficient rankings.
The draw for specific groups in the Nations League, which will largely replace worldwide friendlies, will be made on January 24, with the first games taking place next September. The top twelve teams automatically form League A.
Wales have missed out on a place in the top league of Uefa's new Nations League tournament after losing their final World Cup qualifier.
The competition, which Uefa say will replace "most friendlies" in worldwide football, is due to begin on 6 September 2018, and will separate teams according to how they are ranked.
If the winners of a Nations League group have already qualified for Euro 2020 via the qualifying groups, their place in the play-off will go to the next best team in their Nations League group that has not secured a place.
The four sides that finish bottom of their groups will be relegated to League B for the 2020 edition.
The victor will be decided at a tournament between the winners of the four league A groups in June 2019, with semi-finals, a third-place match and a final to be held in one of the finalist countries. Instead that will be delayed, and start in March 2019 and end in November of that year - the qualifying draw does not take place until December 2018. The four group winners will be promoted to League C for the 2020 edition.
Division D: Azerbaijan, Macedonia, Georgia, Belarus, Armenia, Faroe Islands, Latvia, Luxembourg, Kazakhstan, Moldova, Liechtenstein, Malta, Kosovo, Andorra, San Marino and Gibraltar.
The Uefa Nations League group stage will be played across three worldwide breaks between September and November 2018.