Palestinian officials say an Israeli strike has killed two people in Gaza, after Israel's military says it targeted a militant observation post in response to an explosive device placed along the border.

The military says a tank fired at the militant position on Sunday after Israeli troops detonated an explosive device found along the security fence with Gaza that was aimed at attacking troops.

Local Palestinian media also reported that the target of the strike was a militant observation post. The Palestinian Health Ministry says two people were killed.

Gaza militants regularly plant explosives near the sensitive frontier, occasionally harming Israeli soldiers. On Saturday, militants briefly infiltrated Israel and set a fire.

More than 100 Palestinians have been killed in weekly protests along the border in recent weeks.