An incident involving Egyptian and Israeli troops in the border area near Rafah has led to the death of an Egyptian soldier.
Military authorities from both countries say they have launched an investigation into the incident.
Tensions between Egypt and Israel have worsened since Israeli forces took control of the Gazan side of the Rafah crossing point three weeks ago as part of their offensive against Hamas fighters.
Egypt has condemned Israel’s military campaign in Gaza and the murder of thousands of defenceless civilians by Israel.
Although relations between the two sides have often been frosty, Egypt was the first Arab country to sign a peace deal with Israel 45 years ago.
Earlier, Egypt’s foreign ministry had condemned an Israeli strike on Rafah which killed at least 45 civilians, according to Gaza’s Hamas-run health ministry. It accused Israel of the “targeting of defenceless civilians”.
The Israel Defense Forces (IDF) however, said the attack had killed two senior Hamas officials and that it was reviewing reports that civilians were killed as a result of the bombardment.
Although Egypt has maintained a blockade on its border with Gaza since Hamas came to power in 2006, it kept channels open with Hamas and has been acting as a mediator between Israel and the group. This is, in order to reach a ceasefire deal and secure the release of Israeli hostages held by Hamas in Gaza.