They're believed to be the first prisoners taken in Lebanon during the 12-day-old conflict.
The Israeli army said they were seized in the village of Maroun al-Ras where there have been heavy clashes in recent days.
Meanwhile Israeli police have said that at least two people have been killed when Hezbollah guerrillas fired rockets that pounded the northern Israeli city of Haifa.
The rockets slammed into a house, an apartment building and a major road.
Lebanese casualties grow
Across the border, Israeli attacks have killed 12 more people on Sunday taking the overall death toll in Lebanon since the start of the conflict to 362.
Lebanese police and medics reported the figure and said that almost all of those killed on Sunday, were in the south, where Israel is maintaining fierce bombardments of villages.
In the southern city of Tyre, seven civilians died including a 23-year-old female free lance photographer.
Police also reported that a civilian died in eastern Lebanon, an air strike on a factory near the town of Baalbek.
An Israeli missile blew up a minibus part of a Red Cross convoy killing three people, while other missiles destroyed houses killing three more.
The militant group Hezbollah said it lost three more of its fighters in the south, bringing to 16 the total number of guerrillas killed since the start of Israel's offensive on July 12.
Objective is to win: Israeli commander
The commander of Israel's northern military region has said the Israeli offensive on Lebanon to defeat Hezbollah will continue for "several weeks”.
"The objective is to win. How long will this take? In my opinion several weeks," General Udi Adam told public radio.
"Victory means, to my eyes, that Hezbollah is no longer present on the line of contact (close to the Israeli-Lebanese border) and no longer has the ability to fire rockets."
International force proposal
Israeli Defence Minister Amir Peretz said that Israel would accept a temporary international force, preferably led by NATO, in southern Lebanon to keep Hezbollah away from the border.
Israeli officials had expressed opposition to an international force in the area in the past worrying it would be weak and ineffectual.
A two-thousand-strong UN force that's patrolling southern Lebanon has been unable to stop previous Hezbollah attacks on Israel.
Gaza conflict continues
Palestinian militants in Gaza fired five rockets at Israel early on Sunday, despite reports they had agreed to halt such attacks.
Palestinian officials said the main militant groups, Hamas, Islamic Jihad and the Al-Aqsa Martyrs' Brigades, reached an agreement to stop firing rockets if Israel called off its Gaza offensive.
Israel launched it last month after Hamas-linked militants captured a soldier in a raid on an Israeli military post.
More than 100 Palestinians have been killed in the offensive, the majority of them gunmen.
But the militant groups denied an agreement had been reached and Sunday morning militants launched five homemade rockets into Israel, causing no injuries.
Meanwhile Israeli aircraft targeted a warehouse in Gaza that the army said was being used by militants to store and make weapons.
A warning was given to a man living above the store before the air strike, Palestinian security sources.
Israeli military sources confirmed that a telephone call was made to the house before the air strike to try to avoid civilian casualties.
The warehouse was being used by the Islamic Jihad militant group, the Israeli army said. Palestinian sources confirmed that the group had been using the storage site.