UPDATE 1-Iceland, UK, Dutch holding new Icesave talks

* Talks started Thursday, continue into Friday

* Being held at a lower level

* Last meetings made no progress

(Adds Dutch comments)

STOCKHOLM, Sept 2 (Reuters) - Icelandic negotiators and their British and Dutch counterparts held new talks in the Netherlands on Thursday in a fresh attempt to solve a dispute over $5 billion in debts related to Iceland's banking collapse.

The British and Dutch governments want Reykjavik to return money paid to depositors whose funds were frozen in so-called "Icesave" accounts operated by Landsbanki, which collapsed along with Iceland's other main commercial banks in 2008.

"There are meetings now, today and tomorrow in Holland," Icelandic Finance Ministry spokeswoman Rosa Brynjolfsdottir said.

She said the meetings were between the negotiating committees of the three countries, but declined to give further details.

A spokesman for the Dutch finance ministry said the talks were at the civil servant level, rather than being among more senior political staff, and that the Netherlands continued to pursue what he called a "reasonable" deal.

"They have indicated they want to negotiate a good and fair agreement," the spokesman said of the Icelandic side.

The last meetings between the three sides in July failed to make any progress on the issue, which is a stumbling block to Iceland's hopes of joining the European Union and has delayed the country's return to financial normality.

(Additional reporting by Ben Berkowitz in Amsterdam)

(Editing by Patrick Graham)