Two Israeli soldiers have reportedly been killed following an explosion east of the Gaza Strip.
The soldiers were part of a patrol that was targeted by a bomb.
Dubai-based news channel Al-Arabiya is also reporting that there was an exchange of gunfire following the explosion.
It is also believed that there was an attempt to kidnap Israeli troops during the incident.
Hamas has claimed responsibility for the attack in the town of Khan Yunis.
Elsewhere, a Palestinian was seriously wounded by shrapnel from Israeli tank fire, according to medical sources.
The Israeli army has yet to comment on the incident.