Iceland's Eurovision act could face punishment after displaying Palestinian flags during the live broadcast, organisers said.

Hatari, a leather-clad bondage punk trio, had been critical of Israel before Saturday's grand finale, going as far as to challenge the country's prime minister, Benjamin Netanyahu, to a 'friendly match of traditional Icelandic trouser grip wrestling'.

During the live final, the band members held up Palestinian flags while their public vote was being announced.

Iceland band Hatari use the Eurovision Song Contest to protest against the Israeli occupation of Palestinian territories by holding up Palestinian flags while their public vote was being announced in the live final

Participant Hatari of Iceland performs during the Grand Final of the 2019 Eurovision Song Contest in Tel Aviv on May 18

In a statement, Eurovision said the 'consequences of this action' will be discussed by the contest's executive board.

It said: 'In the live broadcast of the Eurovision Song Contest Grand Final, Hatari, the Icelandic act, briefly displayed small Palestinian banners whilst sat in the Green Room.

'The Eurovision Song Contest is a non-political event and this directly contradicts the Contest rules. The banners were quickly removed and the consequences of this action will be discussed by the Reference Group (the Contest's executive board) after the Contest.'

During her performance at the final, Madonna's backing dancers were seen wearing Israel and Palestine flags on their backs. Eurovision has now confirmed they were not an approved part of the show and Madonna has 'been made aware' the event is supposed to be 'non-political'

Eurovision is supposed to be 'non-political' however the build-up was been marred by controversy and calls for a boycott by pro-Palestinian activists. During Madonna's highly anticipated performance, her backing dancers displayed Israeli and Palestinian flags and Madonna symbolically appeared to stand on a dancer clad in a Palestinian flag (above)

Eurovision is supposed to be 'non-political' however the build-up has been marred by controversy and calls for a boycott by pro-Palestinian activists.

During Madonna's highly anticipated performance, her backing dancers displayed Israeli and Palestinian flags.

Organisers said it had not been part of the approved act.