Good Housekeeping suggests using a lint roller to remove towel fuzz, or wrapping tape around your hand with the sticky side up and pressing over the towel to lift the fuzz off. In addition, cleaning the lint filter after every use can help prevent the fuzz from showing up.
Another method to help with towel fuzz removal is adding a large piece of nylon netting in the dryer along with the towels. The netting tumbles against the towels, which causes the fuzz to fall off. Towel fuzz can be avoided in the future by buying towels labeled as combed cotton.