There have been no reports of injuries related to the problem.
The recall, the first for the new smartphone though not the first for a battery, comes at a crucial moment in Samsung's mobile business.
"In addition, affected customers will receive a 25 credit on their phone bill or a 25 gift card for their troubles.
Apple is expected to announce its new iPhone next week and Samsung's mobile division was counting on momentum from the Note 7's strong reviews and higher-than-expected demand.
Samsung did not say when the Note 7 will be available for general purchase the report added.