Israel has agreed to the deployment of more Egyptian troops in the Sinai peninsula, after recent cross-border attacks sparked a diplomatic dispute between the two countries.

At least eight Israelis were killed last week when militants crossed into southern Israel from the Sinai. At least 26 others were wounded in the attacks.

Five Egyptian security men were also killed when Israeli forces pursued some of the militants who had fled to Sinai.

The number of Egyptian troops in the Sinai is limited under the 1979 Israel-Egypt peace treaty. Egypt has long complained that the restrictions make it difficult to maintain security in the Sinai, which separates Israel from mainland Egypt.

An Egyptian security official said Israel agreed to allow Egypt to increase its troop presence in the peninsula, and to allow Cairo to deploy helicopters and armored vehicles there.