A group of gunmen in Egypt crossed into Israel early Monday and shot dead an Israeli along the border security fence.

"Fire was opened at Israeli workers during routine construction work on the security fence between Israel and Egypt," near Nizzana, the Israel Defense Forces (IDF) Spokesman told Xinhua.

"IDF soldiers responded with fire towards the terrorists," according to the army, who said further details of the incident were being investigated, and would not confirm the death until next of kin were contacted.

Army radio said the squad fired an anti-tank missile at one of the employee's vehicles, set off a bomb and opened fire small arms at the workers, killing one.

Local Israeli media said the individual was a Defense Ministry subcontractor construction worker, and that Israeli villages in the area were put on lockdown alert against infiltration by the militants.

Golani Brigade troops deployed in the area killed two to three of the gunmen, according to the Ynet news site, and were combing the area for other possible assailants.

In a similar event in the vicinity last August, a group of militants crossed into Israel and killed eight motorists traveling along a border road in a combined shooting and bombing attack. Israeli security forces in hot pursuit of the gunmen mistakenly shot and killed several Egyptian soldiers, which raised diplomatic tensions between the two countries.

Speaking with Israel Radio, IDF chief Spokesman Brig.-Gen. Yoav Mordechai said it was unclear at this point if the attack was connected to two Grad rockets fired into Israel from the Sinai desert Friday night.

Israel's intelligence agencies are attempting to ascertain the identity of the group behind the rocket attack.

"We are looking at a number of possibilities. Several militant organizations are active in Sinai, including al-Qaeda, Hamas and other radical Islamist elements tied to Iran, who are engaged in provocations and are trying to strengthen their footing in the area," Amos Gilad, director of policy and political-military affairs at the Israeli Defense Ministry, told Army Radio on Sunday.

"I'm sure that we will soon know who is responsible for the launching," he added.