The 35-year-old has been without a club since leaving Al-Ahli and had been linked with a number of possible destinations during the summer. Those included Como, Deportivo La Coruña, clubs in Turkey and Brazilian side Botafogo.
DZ Foot reports that Mahrez has now chosen Al Shamal and is currently in Dubai while he waits to join his new club. The Algerian winger is expected to sign for the Qatar club after deciding against retirement from club football.
Mahrez ended his international career after the 2026 World Cup, closing a chapter that had seen him become one of Algeria's most prominent players. He remains available at club level, however, and has continued training individually while considering his next move.
The move to Al Shamal would give Mahrez a new challenge in the Gulf after his spell in Saudi Arabia. He would also arrive at a club with an Algerian presence, with fellow countrymen Nassim Benaissa and Omar Rafik already on the books.
Al Shamal finished as runners-up in Qatar and are competing in the Asian Champions League this season, providing Mahrez with the prospect of continuing at continental level.
The move also represents a return to a region Mahrez knows well after his time in Saudi Arabia, although the destination is different from the European options that had previously been discussed.
Mahrez's next club will therefore come after a summer in which his name was repeatedly connected with moves elsewhere. His previous experience in the Gulf made that region a natural option, while his technical quality and Champions League experience continued to attract attention.
At Al Shamal, he would join a side that already has an established Algerian contingent. The club's continental campaign also means Mahrez would have the opportunity to play competitive football beyond the domestic schedule.
According to DZ Foot, Mahrez is expected to complete the move after spending recent days in Dubai. The former Leicester City and Manchester City winger will therefore remain in professional football after ending his international career this summer.