Israeli troops have reportedly been shot at near the border with Lebanon.
According to security officials Galilee residents have been ordered into bomb shelters after explosions believed to be caused by a mortar shell fired into the area.
Initial reports suggest there has been an exchange of fire between Israeli and Lebanese forces.
Two Lebanese soldiers are believed to have been killed.
The flare up on the border comes four years after the Second Lebanon War between Israel and Hizbollah.
On Monday five rockets were fired at the Red Sea port cities of Eilat and Aqaba, killing one Jordanian man.
Both Israel and Jordan have suggested they came from militants operating in Egypt’s Sinai peninsula.