A large iceberg has drifted close to a tiny village on the western coast of Greenland, causing fear that it could swamp the settlement with a tsunami if it breaks up.

A danger zone close to the coast has been evacuated and people have been moved further up a steep slope where the settlement lies, a Greenland police spokesman has said.

Video posted on social media on shows the iceberg towering over houses on a promontory in the village of Innaarsuit when a massive chunk of ice slides off into the water sending big waves towards the village.

"We can feel the concern among the residents. We are used to big icebergs, but we haven't seen such a big one before," Susanna Eliassen, a member of the village council in Innaarsuit, said.

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"Nobody is staying unnecessarily close to the beach and all children have been told to stay in areas that are high up," Ms Eliassen added

The government and police are on high alert and have moved a search-and-rescue (SAR) helicopter closer to the remote village with about 170 inhabitants.

Last summer, four people died after waves swamped a settlement in northwestern Greenland.

(Video via Lucia Ali Nielsen)