Ethiopia says its troops have attacked Eritrean forces, in what the government describes as retaliation.
Government official Shimeles Kemal told reporters Thursday that Ethiopian forces attacked a border area used by Eritrea to launch attacks inside Ethiopian territory.
He accused Eritrea of attacking innocent targets in Ethiopia through surrogates.
Ethiopia has accused Eritrea of backing rebels who kidnapped two German tourists in January. They were released earlier this month.
Ethiopia and Eritrea fought a war between 1998 and 2000 that killed an estimated 80,000 people. Tension between the countries has remained high ever since.