كتب : وكالات
The former Ahli left-back will link up with Ismaili squad once the transfer window in January opens, the club added.
Farag, 21, has been a free agent since parting ways with French side Sochaux in the summer and failing to impress during a trial period with Belgium side Mouscron.
He was loaned back to Ahli for six months last season but his role was often limited to being an unused substitute.
Farag was a member of Egypt's youth teams that played in the African Cup of Nations in 2003 and 2005.