Saudi Arabia has recalled its ambassador to Stockholm, the Swedish Foreign Ministry says, as a rift between the two countries deepened with Sweden cutting military ties after a row over a human rights speech.
"Diplomatic relations are not broken. But Saudi Arabia's ambassador has been recalled," foreign ministry spokesman Erik Boman told AFP on Wednesday.
Sweden scrapped a long-standing military deal with the Saudis on Tuesday after accusing the country of blocking Swedish Foreign Minister Margot Wallstroem from speaking at an Arab League meeting in Cairo on Monday.
Saudi Arabia is the third largest non-Western buyer of Swedish arms.
In 2014, Riyadh bought equipment worth 338 million kronor ($A52 million).
Wallstroem had been invited as an honorary guest to the Arab ministers' meeting in praise of her government's decision to recognise Palestine in October.
But an opening speech she was due to give, in which she stressed human rights, with a particular emphasis on rights for women, was cancelled. The speech was later published by the Swedish Foreign Ministry.
Wallstroem has rarely commented on Saudi Arabia but in January she condemned the kingdom's treatment of blogger Raef Badawi, who had been sentenced to 1000 lashes and 10 years in prison for insulting Islam.
The day after she was prevented from speaking in Cairo, her government scrapped its military co-operation deal with the Saudis after coming under intense domestic pressure.
Wallstroem told news agency TT on Wednesday her government had made the "correct" decision by ending the agreement.
"I feel that when I speak about democracy and human rights, I do with the support of the Swedish people," she said.
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