Engineers and bulldozers were to start working Monday on the plan that includes a fence and surveillance equipment such as sensors to detect human movement.
The security measures are expected to cost 1.35 billion shekels ($358 million), media reports said Sunday quoting the Israeli defence ministry.
Some 100-200 people crossed illegally into Israel from Egypt each week when the plan was approved by the Israeli government in March.
In November, the number of migrants coming from Egypt increased to a record high of 700 per week, according to Israel's Population and Immigration Authority. More than 10,000 people have illegally entered Israel so far this year.
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