"We had no choice but to relieve Eid of his duties, especially after the 2-0 defeat to Arab Contractors," Mahalla sporting director Mohamed Helal told FilGoal.com.
"Al-Khashab will be assisted by the same staff who worked with Eid. We will fulfill all his requirements to make sure the club stay in the top flight."
Mahalla's last win came against Tersana on February 17th in the Egyptian Premier League. They have gone five matches without a victory since then.
The Peasants lie 13th in the 16-team league table with 25 points, four above the relegation zone.
"I promise Mahalla fans that their team will not be relegated," Al-Khashab, who annulled his contract with second-division side Damanhour to take over at the club, said.
"There are good players here but they should regain their fighting spirit."
Al-Khashab held the Mahalla position several times during the past few years but hardly made a notable impact.