The South Africa international, who joined Al Ahly towards the end of 2017, has been linked with a potential return to South Africa over recent months.
Speculation was fuelled even further when it was reported that Mahlambi would not be registered for the new campaign with the Red Devils' foreign quota having been filled.
This was confirmed by the player’s agent, Glyn Binkin, in a recent interview with Goal, who revealed that his client was not registered, but would fly out to Cairo in order to gain clarity on the issue.
This has seen Mahlambi back amongst the mix, and the news perhaps comes as massive blow to Mamelodi Sundowns, who were believed to be in pole position to sign the attacker on loan.
The 20-year-old has only managed a handful of appearances for Al Ahly since joining as he has struggled to cement a permanent spot in the starting XI despite some impressive performance.
But with a new coach at the club in Frenchman Patrice Carteron, Mahlambi will hope to feature more regular.
It now remains to be seen what the Brazilians' next step will be in wake of Al Ahly’s decision.
Sundowns were believed to have singled out Mahlambi as a replacement for the departed Percy Tau, who joined English Premier League side Brighton & Hove Albion.
Furthermore, Goal did attempt to contact the player’s representative for further clarity on Mahlambi’s future, but he was unavailable at the time of publishing.