The wall will separate the town of Majdal Shams in Israeli-occupied territory from the suburb of Al-Oude and Ain Al-Tinah in Syria, SANA reported.
SANA said the cement wall would be four kilometers long and eight meters high.
Earlier this year, Israeli forces killed at least 27 people in the area during demonstrations against the Israeli occupation.
On May 15, about 4,000 mainly Palestinian demonstrators gathered at the Golan heights to mark the Nakba, or catastrophe, in which two thirds of the Palestinian population were displaced during Israel’s creation in 1948.
Protesters tried to cross the ceasefire line into Israeli-occupied territory and broke through Israel’s security fence. Israeli forces fired tear gas, warning shots and then opened fire on the marchers, killing at least four.
On June 5, Palestinians again gathered at two places along the Golan Heights ceasefire line. Israeli forces again used tear gas and then live fire to deter the demonstrators. The UN said up to 23 people were reported killed and many more wounded.
Despite a 1949 armistice agreement, Israel and Syria remain technically in a state of war.