The current work deals with the EMHD behaviour of a confined dielectric droplet suspended in another dielectric medium. It is analysed in the presence of an external electric and magnetic field. The present study is valid when the suspended droplet is less conducting than the surrounding liquid pool. The analysis adheres to the immiscible, Newtonian and leaky dielectric fluid model in the creeping flow regime under the framework of the small deformation approximation. We report that the droplet's deformation in the presence of the external electromagnetic field depends on the strength of the electromagnetic field, the mutual direction of the external magnetic field to the electric field, the thermophysical properties and the extent of confinement. The alteration in the deformation is achieved when hydrodynamic forces due to the external magnetic field either aid or oppose hydrodynamic force due to the electric field. We have also observed the phenomenon of shape reversal in the presence of an external magnetic field, which was not previously possible solely in the presence of an electric field. The presence of the external magnetic field also affects the streamline patterns within the droplet and in the surrounding pool. Thus, our results reveal that an external magnetic field can offer an alternative solution for mixing, manipulating, and transporting droplets in various microfluidic devices.