Two Palestinian militants have been killed by the Israeli army near the Kissufim checkpoint on the boundary between Gaza and Israel, officials say.
The Israeli military said soldiers saw the men planting a bomb and ordered tank and aircraft to open fire on them.
The militant group, Islamic Jihad, said two members of its armed wing, the al-Quds Brigades, had been killed during a "mission of jihad".
A third Palestinian spotted by Israeli troops reportedly escaped.
Senior Islamic Jihad leader Khaled al-Batsh told Israel's Haaretz newspaper: "The only choice for the Palestinian people is to continue with the armed struggle and resistance until forcing the occupiers of our land to leave".
Palestinian medical sources named the men as Mohammed Ayyad and Sufian Abu Gharaba.