Recursive call - Action lambda

What am I doing wrong here? How can I execute my action?

var recurse = new Action<IItem, Int32>((item, depth) =>
{
    if (item.Items.Count() > 0) recurse(item, depth + 1); // red squiggly here

    // ...
});

I'm getting a red squiggly when calling recurse saying "method, delegate or event expected".

Update

I've accepted Homam's answer. I'd just like to add/share another syntax for the same... But which I find a bit easier on the eyes...

Action<IEnumerable<Item>> Recurse = null;

Recurse = item =>
{
    if (item.Items != null) Recurse(item.Items);

    // ...
};