Saleh's thriller "Boy from heaven", which takes place in a politically troubled Cairo, received the prize for best screenplay at the Cannes film festival in May.
It is about the young fisherman's son Adam who is admitted to Al-Azhar University in Cairo - one of the most important institutions in Sunni Islam.
Once there, the school's leader, The Grand Imam, dies, and Adam is drawn into an intricate power game when a new leader is to be chosen.
The film has a Swedish cinema premiere on 18 November.
Östlund was not allowed to compete for Sweden
Saleh competed against Jens Sjögren's "Jag är Zlatan" and the documentary "Nelly & Nadine" by Magnus Gertten.
Ruben Östlund's "Triangle of sadness", which was awarded the Palme d'Or in Cannes, cannot be considered because the dialogue is mostly in English.
The Oscars will take place on March 12, 2023.
Long way
It is the ten-strong Swedish Oscar committee consisting of industry professionals and critics who make the choice.
The road to a possible Oscar is long.
All countries may nominate one candidate.
The first thinning takes place on December 21, when 15 films go on.
Five of these are nominated on January 24 for the gala itself, which is in March.
Sweden's entry has won the award for best international film three times.
The last time it happened was "Fanny & Alexander" in 1984. The last time a Swedish film was nominated was in 2018 when Ruben Östlund reached through the eye of the needle with "The square".