With England being the favourites for the game, Sigurdsson suggested the lack of pressure on Iceland will play to their advantage.
"We are a small nation that nobody expects anything of... We will be the underdogs. It's going to be a tough night but it will be worth it," Sigurdsson told reporters after Wednesday's win.
"Is there any reason to worry about England? No, but we know it will be a very tough game. We have no pressure on us, that's the main thing. But if you look at England, if they lose to us there will be headlines back in England."
England have come under pressure after scoring just three goals so far as their strikers struggle to find their feet in the tournament, but Sigurdsson felt this highlighted the strength of Hodgson's squad.
"There are not many weaknesses in England's squad. They have a very good team and have got through a tough group, without playing their best football," said Sigurdsson, who is the only Icelandic player playing their trade in the Premier League.
"But that just shows how good they are and their best is probably yet to come. We will have to defend for long periods against them, but we have shown before that we are capable of it."
(Reporting by Shravanth Vijayakumar in Bengaluru, editing by Julien Pretot)
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