"Fayez's resignation has been accepted," a club official, who spoke on condition of anonymity, told FilGoal.com.

Fayez was frustrated at the club's failure to give him adequate transfer funds to strengthen Mahalla squad.

He was looking to help the team improve on their last season's eighth-place finish in the Egyptian League.

FilGoal.com has learnt that former Mahalla coach Sherif Al-Khashab is a frontrunner to replace Fayez.

Ibrahim Youssef, a former Mahalla player, is also in the frame to take over at the club.