The decision came after Rome's investigators met with Egyptian officials here for two days in order to be briefed about the probe into the killing, Xinhua reported.
Giulio Regeni, 28, disappeared in Cairo on January 25 while he was reportedly on his way to meet a friend. His body was recovered on February 3 in a ditch on the outskirt of the capital, showing signs of torture.
The case has strained the relationship between the two countries.
"Minister of Foreign Affairs Paolo Gentiloni has recalled Ambassador to Cairo Maurizio Massari in Rome for consultations," a ministry statement read.
The decision followed latest developments in the investigation into the Regeni murder case, and especially the meetings between Italian and Egyptian investigative teams held in Rome on Thursday and Friday, the statement added.
"As a result, urgent decisions are needed on the most appropriate actions to relaunch efforts aimed at finding the truth about the barbaric murder of Giulio Regeni".
The investigative material provided by Egyptian officials to the colleagues in Rome also seemed to leave Italy unsatisfied.
Egyptian investigators produced phone records of two Italian friends of Regeni who had been in Cairo at the time of his death and pictures of his body when it was discovered, according to a statement from Rome prosecutor's office.
They did not hand over video footage from the Cairo's district where Regeni had lived, nor from near the metro station where the researcher was seen for the last time, according to Italian media. (IANS)