"An Israeli soldier...was killed earlier this morning," an army statement said.
Israeli media reported the incident took place near the Kissufim crossing at roughly 4am, when a Palestinian allegedly entered an Israeli military exclusion zone inside the Gaza border.
The zone is off-limits to Palestinians, with the Israeli army regularly carrying out military activity in the area.
Israeli soldiers fired at the Palestinian, who responded with fire, killing a Golani soldier and dying in the process, the Israeli army said.
Military sources said that in response, aircraft and tanks fired warning shots into the Gaza Strip.
Palestinian news agency Ma'an cited local witnesses as saying they heard gunfire near the village of Abassan, close to the Egyptian border.
Last week, an Israeli army officer and a soldier were wounded in an exchange of fire with Palestinian militants across the Gaza border.
Israel has maintained a severe siege on Gaza since 2007, and launched a devastating war on the territory in December 2008 that killed over 1,400 Palestinians, effectively destroying Gaza's infrastructure and economy.
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