A policeman was shot and one militant was killed during a police raid on a presumed terrorist haven in Arish, North Sinai.
A security source said in press statements that intense crossfire erupted between police and suspects during the raid, leaving one police conscript wounded.
Fighting is still ongoing, the source said, adding that police cordoned the area off and the wounded officer was taken to the hospital.
Egyptian forces have been battling militant extremists in the restive peninsula in retaliation for bloody attacks against security which killed dozens since the ouster of former president Mohamed Morsi.
Edited translation from Al-Masry Al-Youm