The fate of former US government contractor and NSA whistle-blower Edward Snowden is still hanging in the balance, analysts said on Thursday.

Huang Feng, an expert on international criminal law with Beijing Normal University, said that based on an evaluation of Snowden's current status, it is still difficult to predict the final outcome for him.

"He can stay in Hong Kong, or head to another place that accepts him," Huang said. "It depends on his attitude and the place in which he is seeking political asylum."

Iceland confirmed on Wednesday that several ministry officials had held informal discussions with Snowden's intermediary on the possibility of asylum.

Icelandic Prime Minister Sigmundur David Gunnlaugsson said during a visit to Stockholm that Snowden would need to be in Iceland in order to apply for asylum.

"Since he's not in the country it's not for me to comment on presently," Gunnlaugsson was quoted by AFP as saying.

In an interview with British newspaper The Guardian last week, Snowden described Iceland as a country that shared his values, but he also expressed concerns over Iceland extraditing him to the United States under pressure from Washington.