Prime Minister Ibrahim Mahlab has extended a curfew in parts of North Sinai by another three months, Al-Ahram Arabic website reported.
The 11-hour curfew was initially imposed on 25 October, one day after 31 army personnel were killed in a car bomb attack and 30 others injured.
Following the attack, the government decided to create a buffer zone along the border with the Gaza Strip.
Houses are currently being demolished in an area that is one kilometre wide and 14 kilometres long.
Militants in North Sinai have mainly targeted army and police personnel.
The army has been waging war against jihadists in the area, and has killed hundreds of alleged militants. Civilians have been affected too.
Sinai-based militants Ansar Beit Al-Maqdis have declared responsibility for most of the attacks in the area. They have recently declared allegiance to Islamic State (IS), a militant group based in Iraq and some parts of Syria.