Gunmen opened fire Wednesday on Israeli troops patrolling the border with Egypt, wounding two soldiers, the military said.
An Israeli military spokesperson said the firing came from inside Egypt's Sinai, Xinhua reported.
Initial reports suggested that the shooting occurred near Shivta in the Negev Desert, when an Israel Defence Force patrol came under gunfire from Sinai. An anti-tank missile was also reportedly fired in the attack.
Israel said a number of attackers were killed and injured in the exchange.
Security forces were scrambled to the scene to pursue the assailants, who reportedly fired on the Israelis from several directions, reports said.