This study aimed to investigate the effect of using electronic learning contracts on the self-directed learning readiness of EFL students. A one-group pre-posttest design was adopted. Thirty-six 3^rd-year EFL students at Faculty of Education, Suez University, were pretested on self-directed learning readiness before the experiment and then posttested after it. The electronic learning contract scenario was introduced to participants during a class orientation session. Then, they self-organized into teams and worked online on a discussion page where each team planned and created an electronic learning contract with the instructor on a project related to the course they were studying. Each team had to include in their contract their learning objectives, evidence that these objectives had been achieved, best resources that would enable them to achieve the stated objectives, means for assessing the completed work as well as a due date for completing their project. The instructor monitored participants' progress in developing their projects as well as their engagement in focused discussions. She was also responding to their questions via email and on the discussion page. Teams published their projects online and each participant self- and peer-evaluated the projects. The instructor assessed projects according to the criteria stated in the contracts. Statistical analysis revealed a significant improvement in self-directed learning readiness between pretest and posttest in favor of the posttest (t=6.608, p < 0.05). It was recommended that electronic learning contracts should be used for developing EFL learners' self-directed learning.