Israeli soldiers killed in shooting near Egyptian border

Three Israeli soldiers were killed in a shooting near the border with Egypt, Israel's military said Saturday.

A military spokesman said two soldiers were found dead at an army post on the border after contact with them was lost.

Shortly after the incident, an exchange of fire was reported with a gunman, believed to be the suspect, as Israeli forces were searching the area, leaving a soldier and the suspect dead.

"During an encounter with a terrorist in Israeli territory, a short while ago, an exchange of fire developed. Troops and commanders engaged and shot and killed him (the suspect)," the army said in a statement.

Yedioth Ahronoth daily said the incident took place after the Israeli army thwarted an attempt to smuggle a large quantity of drugs just 3 kilometers (1.9 miles) north of the Israeli army post.

The Israeli army has launched an investigation into the incident.

For its part, the Egyptian army said a border guard was killed in a chase with drug smugglers.

A military spokesman said the guard was chasing drug smugglers when he crossed the border to pursue the smugglers.

In the ensuing exchange of fire, three Israel soldiers and an Egyptian guard were killed and two Israeli personnel injured, he said.