The Israeli army has given little information about the incident At least four Israeli soldiers have been injured in an exchange of fire with Palestinian militants in the Gaza border, Israeli media report.
Channel 10 said two soldiers had been taken to hospital while the others were treated at the scene.
An army spokesman told the channel that the Palestinians had been waiting to ambush an army patrol.
The incident follows a month of increased tension along the border, with frequent exchanges of fire.
It was unclear whether any Palestinians were injured in the incident.
Israel often responds to attacks on its troops from Gaza by carrying out air raids on the coastal enclave.
Late on Wednesday, two Palestinian men were shot dead at the Gaza border – Israeli said they had been attempted to break through the security fence but this could not be independently verified.
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