The temperature dependence of the surface plasmon energy and bandwidth for silver nanoparticles in the size range 8-30 nm embedded in a silica matrix has been studied using diffuse reflection spectroscopy. The dependence shows a non-monotonic jump-like behaviour indicating a low-temperature size-dependent melting of silver nanoparticles. The melting point decreases with the decrease of the nanoparticle size. The hysteresis in the temperature dependence of the surface plasmon bandwidth has been observed, indicating the first-order phase transition.