An Israeli soldier has been killed in a shootout with militants along the Israel-Egypt border.

Israeli troops shot and killed three militants who attempted to infiltrate the country today, thwarting an attack.

Military spokeswoman Lt Col Avital Leibovich says the militants were also wearing explosive belts when they opened fire on troops guarding a team of workers building a border fence between Israel and Egypt's lawless Sinai desert.

The Israeli troops returned fire, killing the militants. The military says an Israeli soldier was shot in the head during the gun battle and later died of his wounds.

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