Israel, that imposes siege on Gazans for years, expects an underground wall that Egypt is building along its border with the Strip will be completed by the end of the year, a senior Israeli official said on Sunday.
Cairo says the work along the 14-km (8-mile) frontier.
Hamas condemns it as a "wall of death" that adds more hardships to Gaza under an Israeli-led blockade by eliminating tunnels from the Egyptian Sinai.
"The Egyptians are working on a project which I hope will be completed by the end of the year," said the senior Israeli official, speaking on condition of anonymity.
Gaza is still considered under Israeli occupation as Israel controls air, sea and land access to the Strip.
Senior Israeli and Egyptian officials meet regularly to discuss regional "security issues", Reuters news agency said.
Israel's assault on Gaza killed nearly 1,500 Palestinians, mainly civilians, and wounded 5,000 others.
Egyptian officials have said steel tubes are being placed at several points along the frontier to form a barrier, but have not elaborated on its purpose.
Citing an unnamed Egyptian intelligence source, Israeli media reports have said the wall will be rigged with sensors and pressurised hoses to flood tunnels with seawater.
1.5 million Gazans live under heavy Israel siege and Egypt still insists on not to opening the only Gaza border crossing in a move condemned around the world in protests, leaving Gazans desperate to digging tunnels underground and risking their lives since 2007.
Agencies
Israel says Egypt wall ready on besieged Gaza by year end
Hamas condemns it as a "wall of death" that adds more hardships to Gaza under an Israeli-led blockade by eliminating tunnels from the Egyptian Sinai.

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