"The ambassador is going back to Iran on Thursday," Danish foreign ministry spokeswoman Anne Møller told AFP.
Denmark has accused Tehran of plotting an "attack" against three Iranians believed to be members of the Arab Struggle Movement for the Liberation of Ahvaz (ASMLA) who live in Denmark.
Tehran blames ASMLA, which it calls a terrorist organisation, for an attack on a military parade in the Iranian city of Ahvaz on September 22nd, spraying the crowd with gunfire and killing 24 people.
Iran has rejected the Danish allegations, claiming Tehran's enemies are conspiring to ruin its relations with Europe.
Copenhagen has been consulting with its European allies about possible sanctions against Tehran.
"In the meeting yesterday (Monday), we received a lot of support. We are still looking at what kind of sanctions can be applied to Iran," Møller said.
"A new phase has begun to counter Iran's unacceptable behaviour. Danish diplomacy will focus heavily on supporting these efforts in European capitals, in Brussels and in Tehran," a foreign ministry statement said.