The Egyptian State TV announced shortly after 9pm that President Mohamed Morsi has recalled the Egyptian ambassaor to Israel, Atef Mohamed Salem.
In a televised statement, presidential spokesperson Yasser Ali said that Morsi has also summoned the Israeli ambassador in Cairo to convey Egypt's rejection of continued Israeli attacks on gaza.
"The president has ordered the Egyptian representative at the United Nations to call for an emergency meeting at the Security Council. In a phone call with the Arab League general-secretary, the president has also called for an emergency meeting for the Arab foreign ministers," Ali said.
Earlier Wednesday, Israel killed seven Palestinians in air raid on the besieged Strip including a leading commander Hamas's military wing, Ahmed Al-Jaabari.
Under ousted president Mubarak, Egypt has recalled its ambassador to Israel over Israeli aggression against Palestinians and Lebanese in 1982, 1988, 2001 and 2005.
Relations between Egypt and Israel have been relatively strained since the onset of the 25 January revolution as many Egyptians have raised voives to demand Egypt stop natural gas sales to Tel Aviv and modify the 1978 Camp David peace treaty.
In 2011, a number of massive protests by pro-Palestinian youths and supporters were organised at the Israeli embassy to pressure the then-ruling military council to shut down the mission.
In September 2011, protesters managed to break into the embassy forcing the Tel Aviv diplomats to seek a new home - a challenge they have not been able to meet yet.