Egypt denied on Friday evening that Israel had carried out an airstrike in the Sinai.
At least five Egyptian terrorists were reportedly killed as they prepared to launch a rocket into Israel.
Some sources spoke of an Israeli air strike conducted from Israeli air space, but the Egyptian military denied this.
"There is no truth whatsoever to any Israeli strikes inside Egyptian territory and the claims that there is Egyptian and Israeli coordination on the matter is utterly baseless," military spokesman Colonel Ahmed Aly said in a statement quoted by AFP.
He said the armed forces and expert teams were still combing the area where two explosions were heard.
Earlier, Egypt's army said two explosions were heard at around 4:15 p.m. local time in the Al-Ojra area, around 1.8 miles from the border with Israel.
"The armed forces are combing the area of the explosions to find out the cause," Colonel Aly said.
Witnesses said Egyptian military helicopters hovered above the site after the blasts.
The IDF would not comment on the alleged airstrike, saying it “does not comment on reports in foreign media outlets,” reported Channel 2 News.
If Israel indeed carried out the airstrike, it would be the first time since the peace treaty with Egypt was signed in 1979 that Israel has attacked in the Sinai. Some reports said that the Israeli airstrike was coordinated with the Egyptian military.
Egypt's army is currently engaged in an offensive in Sinai to curtail a surge in violence since Islamist president Mohammed Morsi was ousted on July 3.
(Arutz Sheva’s North American Desk is keeping you updated until the start of Shabbat in New York. The time posted automatically on all Arutz Sheva articles, however, is Israeli time.)