Israeli military sources claimed: “The Syrian army has taken control of an UN-monitored crossing in the Golan Heights which had been overrun by rebel forces.”
The UN peacekeeping force which normally patrols the demilitarised zone was said to be following developments closely.
Israel has reportedly complained to the UN over the presence of the Syrian army on the border.
The fighting marks an unprecedented escalation along the Syria-Israel border.
According to Britain, France and a recent UN report, the nerve gas Sarin has been used by both sides in the Syrian conflict.
The news comes just days after pro-Assad forces seized the strategic town of Quasir, near the Lebanon border. The victory has deeply weakened the rebel position and delayed the chance of a potential peace conference.