Ahly manager Hossam El-Badry handed in his resignation on Tuesday, a few hours after the Red Devils slumped to 2-0 loss to Kampala of Uganda in the African Champions League on Tuesday.
"Ahly's management accepted Hossam El-Badry's resignation and appointed his assistant Ahmed Ayoub as an interim coach.'' read a statement on the club's official website on Tuesday.
The 59-year-old started his third stint at Ahly in the summer of 2016, succeeding Dutch coach Martin Jol.
He helped the club win two league titles in 2017 and 2018, and guided the Red Devils to their first Egypt Cup title in ten years in 2017 with a defeat of Masry 2-1.
Under his guidance, Ahly came close to winning the Champions League title in 2017, but lost the final to Moroccan side Wydad Casablanca 2-1 on aggregate.
Despite his achievements with the team, El-Badry came under fire following the team's poor results at the end of this season.
The past season saw the Cairo giants lose to Zamalek in the Cairo derby for the first time in 11 years, before exiting the Egypt Cup with a loss to recently promoted side Assiouty Sport.
The eight-time African champions made a disappointing start in the Champions group stage as they were held to a goalless draw at home to Tunisian giants Esperance de Tunis, before losing to Kampala 2-0 and falling to the bottom of Group A with only one point from their opening two matches.
According to Ahly's official website the club's management will meet on Wednesday to discuss the future of the team.
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