The Nigerian goalkeeper was looking for a new club after parting ways with Chippa United.
The 29-year-old moved to the South African Premier Soccer League from Katsina United and had been a regular contributor for the Betway Premiership side.
A number of clubs were said to be keen on the international shotstopper but Azam are believed to have won the race for his signature.
According to Africa Soccer: "The experienced shot-stopper has attracted widespread interest across the continent, with reports previously linking him to South African giants Kaizer Chiefs, Tanzanian champions Simba SC, and Moroccan powerhouse Wydad Athletic Club, alongside growing speculation of potential interest from Europe.
"Azam FC are now the latest club said to be monitoring the goalkeeper closely, with reports suggesting they are keen to add him to their squad for next season."
Nwabali's agent Edgah Mitemah, meanwhile, admitted there had been interest from the Tanzanian Premier League but didn't mention which club were interested in Mwabali's services.
He said on Footy Africa: "Yes, I am aware Simba are looking to sign a goalkeeper, and Nwabali is one of those who has come on their radar at the moment.
"I think he will be a huge addition to the Tanzanian league because of his profile, even though I still do not understand why he left Chippa United when he did."
