JERUSALEM, Aug 16 (Reuters & JMCC) - Israeli troops killed a Palestinian activist on the border with the Gaza Strip after an exchange of fire on Monday in which a soldier was also lightly wounded, the army said.

A statement issued by the military said a patrol spotted Palestinian militants planting an explosive device near the security fence in the southern Gaza Strip.

The force opened fire at the suspects, one militant was killed, a military spokesman said.

Armed Palestinians said they had fired a rocket-propelled grenade at the force during the exchange of fire.

Palestinian residents near the town of Khan Younis said they heard gunfire in the area and said that one man was unaccounted for after the incident, although a body had not yet been recovered.

Violent incidents along the Israel-Gaza border have become less frequent since a three-week war in the Gaza Strip ended in January 2009. This was the second militant killed this month in clashes between militants and Israeli troops. (Additional reporting by Nidal al-Mughrabi in Gaza, Writing by Ori Lewis; Editing by Alison Williams)