Zamalek held a press conference on Tuesday unveiling their new Serbian coach Milutin 'Micho' Sredojevic, revealing the details of the deal.
On Monday, the 49-year-old Micho signed the contract with Zamalek, but the club had not disclosed any details.
"Micho signed a one-season contract for $1.2 million. The contract includes a release clause stipulating a compensation worth two months of the coach's salary," said club chairman Mortada Mansour.
The coaching job has been vacant in Zamalek since the sacking of coach Khaled Galal over a 1-0 loss to rivals Ahly in the Cairo Derby, and the loss of the Egyptian Premier League title.
"I'm very delighted to lead Zamalek. I have worked in coaching in the African continent since 2001. I always try to perform well and achieve positive results where I work," the new Zamalek coach told the press conference.
"I will be assisted by two Serbian coaches, one of them is for the goalkeepers."
"I will offer my best performance to Zamalek, and the players' high quality will help me. With spirit, determination and commitment I can achieve everything. I would like to thank Orlando Pirates, but coaching Zamalek is a dream for anyone," he added.
The Serbian coach won the Ugandan Premier League three times in 2002, 2003, and 2004 upon taking charge for Villa SC. This was before winning the Ethiopian League title four times while taking charge of Saint-George SA from 2005 to 2010.
The former Rwanda and Uganda coach also won the Sudanese league title once in 2010 with Al-Hilal Omdurman.
Under Micho's guidance, Orlando Pirates ended the domestic league in second place last season to ensure a place in the African Champions League; marking their first appearance since losing the final to Egypt's Ahly in 2013.
Under temporary coach Tarek Yehia, Zamalek kicked off their Champions League campaign with a 7-0 hammering of Somalia's Dekedaha in the first leg of the preliminary round on Friday.
(For more sports news and updates, follow Ahram Online Sports on Twitter at@AO_Sportsand on Facebook atAhramOnlineSports.)