Rashid, who previously worked with the Tema-based club as assistant coach under Paa Kwesi Fabin and Herbert Addo of blessed memory, returns after two seasons to replace Kenichi Yatsuhashi who left for Aduana Stars a fortnight ago.
"Inter Allies wish to announce that coach Rashid Iddi has returned to the club as head coach of the first team," a club's statement read.
"He will fill-in the gap and has started working with the team in training. Other departments of the technical team will be announced in due course," the statement added.
Allies vice president Delali Eric Senaye expressed his delight to work with Rashid once again and added that he believes he will do a wonderful job for them.
“We are happy to have Rashid back to the club and we know he will do a good job for us during his stay,” he said.
With the Ghana Premier League currently on break, following an indefinite suspension placed on it by government, Rashid's main target will be nurturing talents for Europeans market since Allies have signed a cooperation deal with Danish Club HB Koge.