The Islamic State's local arm fired two rockets into Israel for the first time from northern Sinai.
"This morning projectiles launched from Sinai hit an open area in southern Israel". It comes a day after an Isis affiliate claimed that several of its members had been killed by an Israeli drone.
Earlier this month the group claimed responsibility for a rocket barrage fired from the Sinai towards Israel's Red Sea resort of city of Eilat. "Forces are searching the area".
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Neither Israel nor Egypt wished to comment on reports about the airstrike.
Photographs in the Israeli media showed homemade rockets constructed from metal piping.
The ISIS-affiliated Amaq news agency reported that that an Israel Air Force (IAF) drone fired at the terror cell as it was traveling in a vehicle. They were traveling in a auto in Sinai near Rafah, on the border with Gaza.
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A Palestinian from Gaza was reportedly among those killed in the strike.
The alleged drone strike follows an escalation of hostilities nearly two weeks ago between Israel and "Sinai Province", a militant group linked to the Islamic State.
Israel and Egypt signed a peace treaty in 1979 and maintain close security cooperation.
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The IS has been in a vicious conflict with the Egyptian military in the Sinai for years.