The Portuguese, who was due to leave when his contract runs out in 2010, is set for a premature exit after Ahli accepted his request.
"The Ahli board have accepted Manuel Jose's request to terminate his contract at the end of the ongoing season," a club statement read on Sunday.
The Egyptian champions revealed Jose's willingness to take over the Angolan national team rather than fulfilling his contract in Cairo.
No further changes to the technical staff will be made though, which means that Hossam Al-Badri remains as assistant coach for now.
Jose's last game with the Red Devils will be against Angola's Santos in the CAF Confederation Cup on May 31st.
Consequently, the veteran tactician will be present should Ahli set a play-off meeting with Egyptian Premier League rivals Ismaili.
The Dervishes are level on 57 points with Ahli, and a play-off tie is widely expected with two weeks remaining till the end of the season.
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Jose quits Ahli for Angola