Israeli forces on Sunday (local time) "fired on UNIFIL peacekeepers from a Merkava tank from near a position Israel has established in Lebanese territory", the peacekeepers said in a statement, adding heavy-machinegun rounds hit about 5 metres (5.5 yards) from their personnel.
The Israeli government has approved a major plan to accelerate the production of Merkava tanks and the Tiger and Eitan armored personnel carriers, with a budget exceeding NIS 5 billion (USD 1.4 billion).
Israeli Prime Minister Benjamin Netanyahu is holding a security assessment at the Kirya in Tel Aviv with the War Cabinet members and senior security establishment officials.
Amid the ongoing conflict between Israel and Hamas, several Merkava tanks and troops have been positioned by the Israel Defence Forces (IDF) near the Gaza border in South Israel.