"We have asked our ambassador in Libya to come [back] and we will hand a memorandum to the Libyan ambassador asking him to leave," Foreign Minister Prince Saud al-Faisal said.
He said the move was related to "the Libyan plot to which the kingdom was subjected".
Details of the purported plot to assassinate Bin Abd al-Aziz, de facto ruler of the oil-rich kingdom, came to light earlier this year when an American Muslim activist pleaded guilty to illegal financial dealings with Libya and testified that he had been involved in a Libyan plan to kill the crown prince.
Tripoli has denied involvement in such a conspiracy.
Al-Faisal said his country was not taking more retaliatory measures against Libya at the moment.
"The kingdom is confining itself to these measures in appreciation of the brotherly Libyan people, especially with the approach of the hajj season," he said, referring to the annual pilgrimage to Muslim holy sites in Saudi Arabia.