The troops were conducting a routine morning patrol along the border when Engineering Corps soldiers from the Southern Regiment found the hidden bomb, Israeli broadcaster Arutz Sheva reported.
The explosive was deactivated and was expected to be either blown up or transferred to a laboratory for inspection, the broadcaster said.
An Israeli military spokesman blamed the placement of the device on Palestinians.
"The terror elements continue to make use of the area near the security fence to plan attacks against the troops," said the spokesman, whose name wasn't reported.
Notable deaths of 2014 [PHOTOS]