Protests in Yemen descended into violence on Friday with at least five people killed and dozens wounded as Saleh rejected the Gulf Arab plan to secure an end to his 32 years in power.
"The ambassador is being withdrawn for consultations," a Foreign ministry official, declining to be named, told Reuters on Saturday.
Saleh, facing an unprecedented challenge from hundreds of thousands of protesters, initially accepted an offer by Saudi Arabia and other Gulf Arab states, as part of the Gulf Cooperation Council (GCC), to hold talks with the opposition.
On Wednesday, Qatari Prime Minister Sheikh Hamad bin Jassim al-Thani said the GCC would strike a deal for Saleh to leave.
And on Friday, Saleh told tens of thousands of supporters in the capital: "We don't get our legitimacy from Qatar or from anyone else ... we reject this belligerent intervention."
Frustration with the impasse may push the thousands of Yemenis who have taken to the streets closer to violence.
Five protesters were shot dead on Friday, bringing the death toll from clashes with security forces this week to at least 26.
On Saturday, hundreds of youths, including schoolchildren boycotting classes, marched in the southern port city of Aden, blocking traffic and asking shops to close in protest against Saleh's continued rule.
Residents said police shot in the air to disperse the demonstrators. There were no immediate reports of casualties.
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