The 41-year-old Australian attempted to make a joke out of the TV adverts he made for the supermarket chain, but it backfired after fans called for his sacking.
After singer Olly Murs said he was embarrassed to be crowned ‘Rear of the Year,’ Peter quipped: ‘Olly, dude, you don’t need to be embarrassed, I’ve done an Iceland advert.’
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As fellow contestants looked shocked, Twitter went into overdrive with fans calling for Iceland to sack him.
One user wrote: ‘You won’t have an Iceland deal for much longer after that comment Peter Andre @CelebJuice.’
However, surprisingly Iceland were behind Andre, calling him a ‘top bloke’ and that he was just ‘making a joke.’
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Embarrassment continued for Pete however, after his ex-wife Katie Price was used in a game where guests have to vote if they were more attractive in the past or now.
Pete ignored the round and sipped on his drink instead.