According to the Israeli army, the 20-minute clash left one Israeli soldier injured.
Following the incident, Israeli tanks and two armored troop carriers entered a hundred meters into the Palestinian zone and shelled the area in the central Gaza Strip.
Earlier, Israeli troops shot and wounded three Palestinians, one of them a teenager, in the northern Gaza Strip.
The Palestinians were reportedly collecting gravel to use in construction work when they came under fire.
Nine Palestinians have been killed and 71 have been injured by Israeli soldiers while collecting construction material near the Gaza border in the year 2010.
In the crippling siege imposed by Israel for over three years, Gazans are barred from importing building materials they need for the reconstruction of their homes, offices, and infrastructure devastated during Israel's war against the coastal enclave.
The December 2008-January 2009 war claimed the lives of over 1,400 Palestinians -- most of them women and children.
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