Israeli forces are reportedly clashing with Palestinian terrorists near the southern city of Sderot and the nearby Kibbutz Mefalsim, close to the Gaza border.
Gunfire is heard in the area, according to Hebrew-language media reports.
The military has not provided any information on the incident.
The Sderot municipality orders residents to remain locked in their homes until further notice.
“Due to fear of a security incident, you must lock yourself in your homes immediately!” the city says in a statement.
The Israel Defense Forces believe some Palestinian gunmen are still in Israeli territory following Hamas’s terror attack on southern Israel on Saturday morning.