"Our negotiations with Mokhtar were successful and he has already put his signature to the contract," Masri president Kamel Abou-Ali told FilGoal.com.
"Under Mokhtar's management, Petrojet were quite impressive and I know that he will be able to live up to expectations.
"I promise Masri's fans a top-four finish next season."
Abou-Ali refused to disclose the financial details of the deal, which went through right after midfielder Mahmoud Abdul-Hakim joined the coastal club from Petrojet as well.
Mokhtar, a former Ahli and Egypt star, has been in charge of Petrojet since 2005, helping the team finish in the top four in the past couple of seasons.
The highly-rated manager announced that he would leave Petrojet last month. His successor at the petroleum outfit is yet to be known.