The Peasants join Mansoura and Asyut Petroleum to the second division after finishing 14th on 31 points.
Ironically, Mahalla were the only team who managed to beat champions Ahli this term.
Ahmed Hassan Farag's equalizer to Ahmed Eid's early goal was never enough for Mohamed Radwan's side, who were hardly helped by the results of their rivals.
Arab Contractors stunned Petrojet 3-0 to reach 34 points; the same target achieved by Masri and Gouna, who played out a 1-1 draw in Port-Said.
In Suez, a brace from Ihab Al-Masri and a goal from Reda Al-Weashi lifted Contractors over Petrojet, who only managed a fourth-place finish.
Ismaili finish third
Ismaili snatched third place from Petrojet after beating Asyut 2-1, courtesy of goals from Ahmed Ali and Abdullah Al-Shahhat.
The Dervishes, who finished runners-up last season, booked a place in the African Confederation Cup next term.
Leaders Ahli edged Military Production with a goal from outcast striker Ahmed Belal at Cairo Stadium, while Zamalek drew 0-0 at Mansoura.
Elsewhere, Police Union claimed fifth place with a 2-0 victory over Gaish, thanks to goals from Samuel Kyere and Salah Ashour.