كتب : Hatem Maher
Telecom needed a gift from Ittihad, who were facing their relegation rivals Ghazl Mahalla, to remain in the top flight.
But Mahalla overcame Ittihad 2-0 to stay one point clear of third-bottom Telecom.
An own goal from Ittihad keeper Al-Hani Soliman and a superb strike from midfielder Salah Soliman handed The Peasants invaluable three points.
Telecom, who gained promotion to the Premier League in 2007, couldn't survive relegation under the guidance of Egypt legend Hossam Hassan.
They claimed an easy victory over Asyut courtesy of goals from Amr Anwar and Sherif Omar but it wasn't enough to prevent them from going down.
Former Egypt striker Hassan, the country's all-time top scorer, had a successful spell in his first managerial experience with Masri before succeeding Helmi Toulan at Telecom's helm earlier this season.
Telecom followed Olympic and Tersana to the relegation trapdoor.