كتب : Mohamed Sabe
Saleh put pen to paper on a contract that will see him making $24,500 a month, Libyan newspaper Al-Jamahiria reported without stating the length of the contract.
Libyan Football Federation (LFF) president Jamal Jafari attended the signing took place on Tuesday.
Jafari is said to be in negotiations with Saleh about the identity of the trainer and goalkeeping coach
The LFF also decided to name Nabil Taher as team supervisor and will be responsible for appointing a local coach to assist Saleh.
Saleh formerly coached Egypt on two occasions, the first was in 1995 and the second was in the 2004 African Cup of Nations in Tunisia.
The former Ahli and Masri player also enjoyed successful spells with some of the Arab world's top clubs including Ismaili and Al-Nassr of Saudi Arabia.
Libyan football has witnessed great improvement in recent years and capped it by reaching the African Cup of Nations in Egypt earlier this year.