ISLAMIST INSURGENCY

Egypt is battling an insurgency that gained pace after the military ousted Islamist President Mohamed Mursi of the Muslim Brotherhood in mid-2013 after mass protests against his rule.

The insurgency, mounted by Islamic State's Egyptian affiliate, has killed hundreds of soldiers and police and has started to attack Western targets.

A joint force from the Egyptian police and military had been chasing militants in the country's vast western desert when it came across the tourist convoy, which it mistook for the militants it was pursuing, the Interior Ministry said in a statement.

An Egyptian army representative declined to comment.

Islamic State released a statement carried by its supporters on Twitter saying it had repelled an attack by the Egyptian military in the western desert.

Security officials say militants operating from Libya to the west of Egypt have been trying to forge ties with Islamists in the Sinai on the east side of the country.

The vehicles used by the tourist convoy closely resembled those of the militants the joint force had been pursuing, security sources said.