Israel and Lebanon armies reportedly exchanged fires near the border on Tuesday, and initial reports said there are injures on the Lebanese side.

Lebanese and Israeli army sources told Israel Channel 10 TV that Lebanese soldiers fired at an Israeli army bulldozer engaged in clearing bush along the border between the Israeli border community of Misgav Am and the Lebanese village of Aadaise.

The report said the Lebanese troops opened fire when they thought Israeli vehicles crossed the border during the bush- clearing operation.

The Israeli army fired tank shells at the source of the fire, wounding two, among them a Lebanese soldier and civilian, according to initial, unconfirmed reports.

Israeli residents reported hearing explosions in the vicinity, and there are reports of a Katyusha rocket being fired into Israel.

"I heard loud explosions. We saw a cloud of smoke "now there are planes flying above us toward Lebanon," a resident told Israeli news service Ynet.

There is no confirmation of the reports, and an Israeli Army spokesman told Xinhua that they were checking into the incident, which is still developing.