The Egyptian government through its official MENA news station said an Israeli statement of regret for the attack wasn't enough considering the gravity of the breach, al-Jazeera reports.
Thousands of Egyptians protested outside the Israeli Embassy last weekend. Tensions are high between the countries after gunmen dressed in Egyptian uniforms killed several Israelis in a cross-border raid last week.
Cairo denied that gunmen were using its territory to launch attacks on Israel. A group claiming to be associated with al-Qaida took responsibility for the attack, causing analysts to express concern about the security situation in post-revolution Egypt.
The Egyptian government said it wanted to discuss a joint investigation into last week's raid with the Israelis.
"Egypt affirms its solicitude for maintaining peace with Israel but Israel must also assume responsibility for protecting this peace," al-Jazeera quoted the government as saying.
The Arab League in its statement said Israeli bears "full responsibility" for what it said were crimes committed against Egypt.