UPDATE 5-Israeli soldier, 3 gunmen killed near Egyptian border

* Gunbattle after militants ambush Israeli soldiers -general

* Concern about Sinai security despite Egyptian crackdown

(Adds second Israeli soldier wounded, army comment)

JERUSALEM, Sept 21 (Reuters) - Three armed militants slipped

into Israel from Egypt's Sinai peninsula on Friday, killing an

Israeli soldier and wounding another before being shot dead, the

army said.

It was at least the fourth cross-border attack in just over

a year - violence that has persisted despite an Egyptian army

and police crackdown on Sinai militants begun last month.

The latest incident underscored deep Israeli concern about

faltering security in Sinai since the fall of Egyptian president

Hosni Mubarak in a democratic uprising in 2011. Israel is now

building a fence along the desert border to improve security.

"A big terror attack was thwarted," Israeli army spokeswoman

Lieutenant-Colonel Avital Leibovich said of Friday's violence.

"Three terrorists infiltrated from Sinai into Israel and

opened fire towards IDF soldiers guarding the border. The

terrorists were well armed and carried explosive belts upon

their bodies," she added.

General Tal Russo, commander of Israeli troops in the

region, said the gunmen ambushed soldiers who had just

intercepted some African migrants trying to cross into Israel

and were providing water to the group.

"In the first round of fire, one of our fighters was

killed," Russo told reporters near the scene. Another soldier

was wounded by shrapnel when a gunman blew up due to an

explosives vest he was wearing, the general said.

Russo said he had no information on the affiliation of the

gunmen but promised an Israeli response for the attack once

their identities were discovered. Previous attacks were blamed

on Palestinian militants from Gaza and supporters believed to

have established bases in the sparsely inhabited Sinai.

An Egyptian security source said one of the gunmen died when

a bomb he was carrying detonated and the other two were killed

in a gun battle with Israeli forces. He added that the

nationalities of the gunmen were not immediately known.

Israel is putting up the border fence both to bolster

security and curb an influx of African migrants, hoping to

finish it by the end of the year. It will run along most of the

266 km (165 miles) from Eilat on the Red Sea to the Gaza Strip.

Leibovich said Friday's attack occurred about halfway down

the border near an area known as Mount Harif, where the barrier

is still under construction.

In June, militants fired on Israelis building a section of

the barrier, killing a worker, before soldiers shot dead two of

the attackers.

In August, Islamist gunmen killed 16 Egyptian border guards

in north Sinai and hijacked an armoured vehicle which they

smashed across the border before being killed by Israeli forces.

Shortly afterward, Egypt sent hundreds of troops backed by

tanks, armoured vehicles and helicopters into the region in a

joint operation with police to raid militant hideouts, arrest

suspects and seize weapons.

(Additional reporting by Tom Perry in Cairo and Allyn

Fisher-Ilan in Jerusalem; Writing by Ori Lewis; Editing by

Crispian Balmer and Mark Heinrich)