The Israeli army late Tuesday sent three tanks into a Palestinian area of the Gaza Strip, near the Rafah crossing point into Egypt, after an exchange of gunfire with Palestinians, a Palestinian source said.
The tanks advanced some 100-150 metros into the area and fired, before withdrawing after about an hour, the source said.
There were no details on possible casualties.
However, an Israel army spokesman categorically denied that there had been any incursion into Palestinian territory.
Earlier, a military spokesman said Palestinians had fired on an Israeli army patrol in the area, causing no casualties.
The clash came the day before Palestinian leader Yasser Arafat and Israeli Foreign Minister Shimon Peres are due to meet to discuss how to consolidate a shaky cease-fire.
Meanwhile, the military spokesman said a bomb had been found and defused near the Jewish settlement of Mevo Dotan, in the northern West Bank -- GAZA CITY (AFP)
