JERUSALEM -- Israeli troops shot and killed a gunman on Saturday in a shootout in southern Israel along the Egyptian border, the military said.

It said the assailant was in Israeli territory when he opened fire at troops. The soldiers returned fire, killing the gunman. In an earlier statement, the army said two people were wounded.

Israel and Egypt signed a peace agreement in 1979 and maintain close security ties. Fighting along their shared border is rare.

The exchange of fire reportedly took place around the Nitzana border crossing between Israel and Egypt. The crossing is located about 40 kilometers (25 miles) southeast of the point where Israel’s border with Egypt and the Gaza Strip converge. It's used to import goods from Egypt destined for Israel or the Hamas-ruled Gaza Strip.

Israel built a fence along the porous border a decade ago to halt the entry of African migrants and Islamic militants who are active in Egypt’s Sinai desert.