Eleven security personnel were killed in North Sinai's Sheikh Zuwayed on Tuesday after an IED exploded, state news agency MENA reported.
Four other security personnel were injured.
Security sources told Reuter's Aswat Masriya that unknown assailants planted the device.
MENA added that gunfire took place between police and the assailants after the explosion.
The interior ministry's spokesman, Hany Abdel-Latif, told Aswat Masriya that unknown assailants planted the IED on the international highway between Sheikh Zuwayed and Rafah, and that the device exploded as a police armoured vehicle passed by.
Egypt's army has been fighting an Islamic insurgency in the violence ridden northern part of the peninsula.
Jihadist groups have used IEDs, among other methods, to attack security forces on a number of occasions.
At least six decapitated bodies have been found in North Sinai in the last two weeks, with militants claiming the killings as punishment for collaboration with the police and army.
The army has targeted militant hideouts with helicopters and ground troops, killing tens in recent months.