At least one Palestinian was killed and another severely wounded in a gunbattle early on Tuesday between Islamic Jihad fighters and the Israeli army in the Gaza Strip, medics said.
Islamic Jihad members and witnesses said, two others Palestinians were wounded.
An Israeli army spokeswoman confirmed the incident, saying four Palestinians approached the border fence and shot towards soldiers, who returned fire and hit four "terrorists. She said, there were no casualties on the Israeli side.
The Al Quds Brigades, the armed wing of the Islamic Jihad, said, soldiers had tried to enter the Bureij refugee camp in central Gaza.
The Israeli army deployed a helicopter and fired tank shells, witnesses said.
Tanks, armoured vehicles and other military vehicles were deployed on the Israeli side of the border following the incident, witnesses said.
The Hamas rulers of Gaza have said, the various militant groups have agreed to suspend rocket fire in the wake of the devastating Gaza offensive in January 2009 but would fight back if Israeli forces cross into Gaza.
But Islamic Jihad, a smaller and more radical Islamist group, has rejected any ceasefire.
And last month, Hamas and other groups claimed responsibility when fierce clashes erupted along the Gaza border. Two Israeli soldiers and two members of Islamic Jihad were killed in the fighting in central Gaza.