The Israel army believes that several Hezbollah guerillas were killed in the exchange of fire close to Moshav Avivim on Israeli side of the border.

Major-General Benny Gantz, who serves as the head of the Ground Forces Command, said on Thursday that ground fighting in limited areas in Lebanon would continue despite the army casualties.

Hezbollah bunkers are well-hidden and discernible only from aclose distance, said Gantz. "The operation is challenging, difficult and complex. Unfortunately, there is the price of casualties, but the other side, unlike us, doesn't report their casualties," he added.

Officials have confirmed that a small number of Israeli troops are carrying out pinpoint operations in south Lebanon, aimed at uncovering tunnels dug by Hezbollah militants.

According to the army, Hezbollah fighters have taken refuge inside these tunnels - often dug under homes in villages - along with their rockets, and that they occasionally emerge to fire one into Israel.

On Thursday morning, three soldiers were wounded in two separate clashes with Hezbollah in the same area.