Amid ongoing protest of thousands of Egyptians in front of Israel's embassy in Cairo on Sunday, Ahmad al Shahhat climbed the building and removed the Israeli flag.
Following the move, people cheered and honked their car horns as protesters prevented police from arresting the young man, DPA reported.
The demonstrators have demanded the Israeli ambassador to be expelled over the killing of five Egyptian policemen near the border on Thursday.
On Saturday, Israeli Defense Minister Ehud Barak apologized for the deaths, saying that he has ordered "a joint investigation with the Egyptian army to clarify the circumstances of the incident."
He made the remarks hours after Egyptian state television announced that Egypt had "decided to withdraw its ambassador to Israel until there is an official apology."
Egypt has also demanded that Israel halt its deadly airstrikes on the impoverished Gaza Strip.
Israel launched its latest military airstrikes on the Gaza Strip on Thursday shortly after eight Israelis lost their lives in assaults that targeted two buses and a military vehicle near Eilat in southern Israel.
The Israeli offensive claimed the lives of at least 16 Palestinians and injured more than 45 others, including children.