Environmental groups say endangered fin whales are being hunted in Iceland and exported to Japan, where they are ending up as luxury dog treats.

Meat from North Atlantic fin whales has been sold by Iceland to Japan for human consumption since 2008, but its use in pet food is something new.

Iceland plans to resume commercial whaling in June which is expected to catch more than 180 whales over the coming months.

Icelandic whaling company Hvalur is reportedly preparing two vessels for the hunt.

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It has sparked anger from environmentalists, who accuse the Icelandic Government of breaching the global moratorium on hunting the whale species.

The EIA says it is "grotesque" that fin whales are killed to supply Japan's growing specialty dog foods market.

Senior campaigner Clare Perry has told Radio Australia's Connect Asia that "almost 100 per cent" of the whale meat is being exported to Japan.

She has urged Japanese pet owners to "really think about what their dogs need".

"Dogs have never really been brought up feeding naturally on whales.

"Why would they be feeding these exotic treats which are shipped halfway across the world when there are alternatives available that aren't as environmentally damaging, and certainly don't help drive the species to extinction."

Fin whales are at very high risk of extinction, according to the International Union for Conservation of Nature.

But Iceland says the fin whale population has increased and can withstand sustainable hunting.