"This was a positive step ahead and in line with the outcome of the Islamic summit in Doha," ministry spokesman Hamid-Reza Assefi told IRNA, referring to the final resolution of the Doha summit which called on all Moslem states to cut ties with Israel.
The main hindrance for resumption of ties between Teheran and Cairo was Egypt's close ties to Israel and with the recalling of the ambassador the ground was prepared for resuming bilateral relations.
The spokesman also hailed Jordan's decision not to rename a new ambassador to Israel in the light of the Israeli violence against the Palestinians.
Reliable sources at the Iranian Foreign Ministry meanwhile denied an Israeli radio report that three Israeli engineers were visiting Teheran on a bridge construction project.
Iran was the main initiator of the final resolution during last week's Islamic summit in Doha which had called on all Islamic states to stop the normalisation process with Israel.
It even threatened to cut ties with any country which switched its embassy from Tel Aviv to Jerusalem
(la/dpa)