Two-dimensional deformation estimates derived from Persistent Scatterer Interferometric (PSI) analysis of Synthetic Aperture Radar (SAR) data can improve the characterisation of spatially and temporally varying deformation processes of Earth’s surface. In this study, we examine the applicability of Persistent Scatterer (PS) Line-Of-Sight (LOS) estimates in providing two-dimensional deformation information, focusing on the retrieval of the local surface-movement processes. Two Sentinel-1 image stacks, ascending and descending, acquired from 2015 to 2018, were analysed based on a single master interferometric approach. First, Interferometric SAR (InSAR) deformation signals were corrected for divergent plate spreading and the Glacial Isostatic Adjustment (GIA) signals. To constrain errors due to rasterisation and interpolation of the pointwise deformation estimates, we applied a vector-based decomposition approach to solve the system of linear equations, resulting in 2D vertical and horizontal surface-deformation velocities at the PSs. We propose, herein, a two-step decomposition procedure that incorporates the Projected Local Incidence Angle (PLIA) to solve for the potential slope-deformation velocity. Our derived 2D velocities reveal spatially detailed movement patterns of the active Svínafellsjökull slope, which agree well with the independent GPS time-series measurements available for this area.