A gunfight between smugglers and Egyptian soldiers on Tuesday near the border with Israel left two suspected criminals dead.
The details of the incident near the border down of Nitzana remained unclear.
Initial reports gave no indication of which side of the border the smugglers were on at the time, or their nationality.
An IDF source told Channel 10 that bags with drugs were found near the scene of the shootout.
The IDF said in a statement that Israeli forces identified shots fired on the border with Egypt, and fired warning shots in the air.
The IDF Spokesperson said that reports of smugglers being wounded were being investigated.
According to Ynet report, the IDF provided medical treatment to injured smugglers. The report said the two injured smugglers were Israeli.