The 29-year-old ended speculation regarding his future as he opted not to extend his contract with Ismaili and rejoin arch-rivals Ahli.
He also rejected an offer from Zamalek, who were chasing his signature since last year.
No contract details were disclosed though, but it was reported that Fadl has signed a three-year deal worth EGP 4million.
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Fadl spoke of his delight with the comeback as he admitted that he had been planning it since leaving the club.
"I am very happy to be back home," Fadl, who was released by Ahli a few seasons ago, told the club's official site.
"Returning to Ahli has been a primary objective for me since I left. When Ahli officials approached me I didn’t think much about financial terms."
Fadl highlighted the importance of his relationship with the current Ahli squad; an advantage which shall make life easier for him.
"The majority of the squad are my friends, so I won't need time to adapt," he added.
"I really miss the red shirt and I hope I can help the club win more trophies."