The meeting will take place on Monday meeting at Benedict XVI's summer palace in Castelgandolfo, outside Rome.
"The purpose of this meeting is to relaunch dialogue with the
Islamic world," said a senior Vatican official.
Islamic diplomats accredited to the Holy See hoped the meeting would help restore trust between the Roman Catholic church and Muslims offended by the Pope's speech.
"We welcome it and are definitely going to participate," said
Iran's deputy ambassador to the Holy See, Ahmad Faihma.
"This is a positive signal from the Vatican. I know that this will improve relations with the Islamic world."
Protests continue
However thousands of Muslims have continued demonstrations after Friday prayers at mosques around the world.
About 300 Muslims waved anti-Pope banners at a peaceful rally in
Malaysia and supporters of the opposition Islamic party PAS demanded the Pope's resignation.
The leader of more than one billion Roman Catholics has expressed regret three times in the past week for the reaction to a speech in which he quoted 14th century Byzantine Emperor Manuel II Palaeologus, who spoke of the Prophet Mohammed's "command to spread by the sword the faith he preached".
But he has stopped short of the unequivocal apology wanted by Muslims for the speech at a university in his native Germany.
The Pope said at his audience on Wednesday his real intention had been to "explain that religion and violence do not go together but religion and reason do".
Western politicians, including US President George W Bush, and
Christian church leaders have tried to calm the crisis by assuring
Muslims the Pope was sincere when he expressed regret at the offence caused.
But many Islamic organisations like the Muslim Brotherhood in
Egypt want the Pope to apologise and explain in detail what his views on Islam are.
Sympathetic observers say the Pope was clumsy to use such an inflammatory quote and behaved more like the theology professor he used to be than a church leader whose every word in public is reported by the world's media.
Italy and the Vatican's own security service have tightened security around the Pope because of reaction to his speech.