The Debenhams Best Buy Value Steam Iron Model S13WH is potentially dangerous due to a fault identified with the cable and the cable guard, a company spokesman said.
He added: "As a precautionary measure to ensure the safety of our customers we are recalling this product."
The irons were sold under the following batch numbers - MIC161031/0411, MIC161103/1111 and MIC161174/1212.
The batch number is located on the rating plate on the heel at the back of the iron.
This product has been available at Debenhams stores in the UK, Republic of Ireland and online at Debenhams.com and Debenhams.ie, sold between June 2011 and April 2013, with a retail price of £12.
The spokesman said that 4,265 irons were involved. Most were bought in stores in the UK, with 336 bought in stores in Ireland, and 73 online.
He added: "A customer reported an electrical fault while using the iron, which caused the cable to ignite. A flame came from the cord area where it enters the iron."
Customers were asked to stop using the iron immediately and return it to any Debenhams store to be issued with a full refund.
Customer services were available on:
:: UK - 08445 616161 Monday-Friday 8am-11pm, Saturday-Sunday 8am-8pm.
:: Republic of Ireland - 00 353 1890 946 779 Monday-Friday 8am-11pm, Saturday-Sunday 8am-8pm.