READ: Ten players available for PSL transfers
Mahlambi left Bidvest Wits to join the eight-time CAF Champions League winners in 2017 but was unable to stake a claim for a regular starting berth.
The forward, who already won the Absa Premiership during his time with the Clever Boys has penned a lucrative five-year deal with Masandawana and will add to the plethora of attacking options manager Pitso Mosimane has at his disposal.
The 20-year-old made 15 appearances for Al Ahly, scoring one goal and assisting a further five.
The club tweeted,"Let's Welcome Phakamani to the Yellow Family Masandawana!"
Welcome to the home of Champions!#WelcomePhakamani pic.twitter.com/KLSt1OtlYt
— Mamelodi Sundowns FC (@Masandawana) August 31, 2018
Mahlambi scored 10 goals and registered as many assists in 27 league games before his sensational transfer to the 40-time Egyptian champions.