"In the course of the pursuit of the attackers, we have managed to locate a group of militants in one of the abandoned houses in al Msaid district", the ministry said in the statement.
The statement added that the militants had engaged with the police and had been killed by return fire. The militants had 14 weapons and three suicide belts with them.
Media have reported that the *Daesh terror group had claimed responsibility for the attack.
The Egyptian authorities have for years been engaged in anti-terror activities on the Sinai Peninsula, where militants have repeatedly staged deadly attacks. In 2014, a state of emergency was declared on the peninsula after militants attacked Egyptian security officers in the area.
*Daesh (also known as ISIS/ISIL/IS) is a terrorist group banned in Russia and many other countries.