Israel has reopened its embassy in Cairo, four years after an Egyptian mob ransacked the site where the mission was previously located.

In a statement, Israel's Foreign Ministry quoted director Dore Gold as saying at Wednesday's opening ceremony that Israel and Egypt "are working together for stability and prosperity" in the region.

It says the Israeli flag was raised and the national anthems of both countries were played during the ceremony at the new location of the embassy.

Israeli diplomats and their families left Cairo in 2011, after rioters stormed the embassy amid angry protests over the deaths of five Egyptian policemen in Sinai, killed by Israeli forces chasing Gaza militants who had carried out a deadly attack.

Egypt and Israel have maintained cordial relations since the 1979 peace treaty.