Ahly were on Saturday sensationally knocked out of the CAF Champions League by Nigerian champions Kano Pillars, while their chances of retaining their league championship hangs in the balance as they are three points behind league leaders Ismaily.
Coach Manuel Jose has announced that he will leave Ahly at the end of his contract by the end of next season, but it seems that the Egyptian champions are already shopping for a replacement.
According to Egyptian television station, Modern Sport, former Ahly boss Dietrich Weise has proposed Matthaus to the six-time African champions.
It is believed that Ahly board requested retired coach Weise to recommend a "charismatic coach" for the task, and the 75-year-old tipped compatriot Matthaus.
Matthaus is currently in charge of Israel's Maccabi Netanya, but it was reported last month that he will quit the club at the end of the season.
The 48-year-old enjoyed a glittering playing career as a footballer, starring for top clubs like of Bayern Munich and Inter Milan.
He was voted 1991 FIFA Player of the Year after leading Germany to win the 1990 World Cup in Italy.
He is also Germany's most capped footballer with 150 games, including 25 appearances in five World Cup finals.
However, Matthaus's coaching career has not yet hit the heights he achieved as a player.
The ex-Bayern sweeper has thus far managed Rapid Vienna, Partizan Belgrade, Atletico Paranaense, Red Bull Salzburg and Netanya, in addition to the Hungarian national team.
Samm Audu, Goal.com