The Manchester City attacking midfielder made his debut in England's 1-0 Nations League win over Iceland on Saturday but was dropped alongside Manchester United star Mason Greenwood for Tuesday's clash in Denmark after breaking rules put in place to ensure player safety.
Foden 20, and Greenwood, 18, both made their worldwide debuts in Saturday's match.
Greenwood had a breakthrough season in 2019-20, where he netted 17 goals in 53 competitive matches for Man Utd.
England play Denmark in Copenhagen on Tuesday in their second Nations League fixture of this September break.
Icelandic police have now fined the duo 250,000 Icelandic Krona (£1,300) for the rule breach during the coronavirus pandemic, which must be paid by the individuals themselves and not by the FA or their clubs.
"Unfortunately this morning it was brought to my attention that two boys have broken the COVID guidelines in terms of our secure bubble and so we had to decide very quickly that they couldn't have any interaction with the team".
They will no have to travel separately back to England.
"Nothing has happened in the areas that we occupy in the hotel", he said.
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Kristen Dark, a spokesperson for the sheriff's office, told Agence France-Presse that there was no evidence of foul play. Currently, Guinness holds that the largest boat parade in history numbered 1,180 for a 2014 celebration in Malaysia .
"They have got responsibilities and they have apologised". It's a very serious situation.
Ferdinand and Lampard went on to have two of the most successful careers of any English player, and after retirement became some of the most respected voices in the game - the former as a pundit for numerous big-money broadcasters, and the latter as the manager of Chelsea, the club where he spent the majority of his career, and one of Europe's elite.
When asked whether the incident had damaged their chances of England selection in the future, Southgate said: "It's too early, until I have all the information and am totally aware of every situation I don't think I should be making those comments".
Foden and Greenwood's respective clubs both expressed their disappointment with the behaviour of the pair in statements on Monday.
"In particular, I want to apologize to Gareth Southgate, for letting him down, when he had shown great trust in me. I've got to try to speak with them later in the appropriate way".
His behaviour not only directly contravenes strict guidelines related to Covid-19, but also falls well below the standard expected of a Manchester City player & England worldwide.
By all accounts, they should have considered themselves lucky; if they'd flouted lockdown "laws" to relax and invite two local women to their hotel at a safe distance, they'd have likely been hung out to dry by the media as an example to anyone else who dares to question the doctrine that we must remain muzzled and isolated.