Al Ahly part ways with head coach Jess Thorup after underwhelming campaign
The club confirmed that Thorup had "signed a settlement agreement after receiving all monies owed in accordance with his contract terms".
Thorup, aged 56, took over in October on a two-and-a-half-year contract after Spaniard Jose Riveiro left the club.
He led Al Ahly to the Egyptian Super Cup, beating arch-rivals Zamalek 2-0, but the team's form declined later in the season.
Al Ahly finished third in the league, missing out on a place in next season's African Champions League and settling for Confederation Cup qualification. They were also eliminated in the quarter-finals of Africa's top club competition.