The incident happened while the soldiers were involved in a clash with Palestinian militants in Gaza.

The army said the group had been trying to plant explosives underneath the security fence along the border.

The clash follows a month of increased tension along the Gazan border with frequent exchanges of fire.

Witnesses in Gaza earlier told news agency they had heard loud explosions close to the border, a short distance from the Nirim kibbutz on the Israeli side.

The Israeli Defence Forces initially confirmed that four of its soldiers had been injured.

But they later said the men, who were part of a group patrolling the border, had been hit by Israeli fire. It also said one had died.

The circumstances of the incident are unclear but there are suggestions that a weapon may have malfunctioned.

The army said it was investigating the incident.