The 55-year-old Portuguese, formerly in charge of the Saudi Arabia national team, replaces Fathi Mabrouk but has met with some fan resistance over an allegedly poor record.
“I do not understand why you doubt my ability to coach Al Ahli. Do you know the names I’ve trained before?” he asked reporters in Cairo on Sunday.
“I’ve worked with Zinedine Zidane, Luis Figo, Roberto Carlos. Do you think I can’t handle Ahly?”
Peseiro was assistant coach at Real Madrid for the 2003-2004 season before embarking on his own head coach career at the likes of Sporting Lisbon, Panathinaikos, Rapid Bucharest and Sporting Braga.
He was most recently sacked by Al Wahda of the United Arab Emirates in February.
No details have been given of Peseiro’s contract terms with the Cairo club.
Mabrouk was sacked after the club lost in the semifinal of the African Confederation Cup to Orlando Pirates earlier this month.
Pirates beat them 4-3 away in Suez in the second leg of the semifinal tie fora 5-3 aggregate success and a place in the final against Etoile Sahel of Tunisia.