Earlier this month, it was confirmed that the former Arsenal invincible would surprisingly be leaving his position after reportedly being offered the chance to work with Evangelos Marinakis's group of clubs, including Premier League rivals Nottingham Forest.
Jason Ito - Edu's former right-hand man - has stepped into the role for the time being, and speaking to Sports Mole, Watts has warned Gooners that they may be waiting at least six months for a direct replacement to arrive at the Emirates.
"It's still at the really early stage of it," Watts replied when asked for an update on the situation. "Arsenal's management group went over to the USA during the international break. Arteta, Jason Ito, who's been Edu's number two for the last year, but he's been working with Edu for the last five years at Arsenal. He's stepped into Edu's shoes at the moment as the interim sporting director while this process goes on. Richard Garlick, the managing director, went over there as well.
"Tim Lewis, who's basically the Kroenkes' right-hand man who's based over here, one of the directors. The talk was all going to be about the summer transfer window and the planning going forward, but obviously the sporting director search was right there at the front of the discussion as well. We're seeing all these names linked, which is very understandable because it's a huge position for someone to come into, but we're still at a very early stage from it.
"From my understanding, at this early stage, a recruitment company is going to be dealing with the initial first stages of it. Arsenal have got people in mind. When that position becomes available, you think, 'oh, there's this guy' but the names that are being banded around at the moment, they might well interest them, but it's a very early stage and Arsenal aren't focusing on one person right now.
Arsenal "more than comfortable" with Ito as sporting director
"They're concentrating on getting a very good short list together. Then they're going to go out, they're going to talk to these people. There's no rush. They really like Jason Ito. He's highly respected. He knows exactly how the operation has been working for the last five years, but certainly the last year. They're more than comfortable with him steering the ship for now while they go out to look for the best possible candidate. And that's the crucial thing. They want the best possible candidate to come in."
Edu's status as a former player has naturally thrown up the suggestion that another ex-Gunner could succeed him at the Emirates, including his compatriot and fellow Invincible Gilberto Silva, who did not rule himself out of the running when asked earlier this month.
Tomas Rosicky - who has been Sparta Prague's sporting director since retiring - is another candidate, as is Per Mertesacker, who has been the head of the Gunners' academy system for the past six years.
Another man Arteta knows well - Roberto Olabe, the Real Sociedad chief who signed the Arsenal boss as a player 20 years ago - is set to be available at the end of the season, but Watts does not think it is a guarantee that Edu's successor will be thrust into the role of sporting director.
"It's not a given that he will come in and be a sporting director," Watts added. "Whoever comes in, it might well be that he moves back to a technical director role, just focusing more on the first team. You've got Per Mertesacker, the academy manager, and Clare Wheatley looks after women's team.
"Edu, since his promotion, was overseeing all three of those departments, but it might be a case now that Per moves back to just looking after the academy, Clare looks after women's team, and whoever comes in is just going to focus on the senior team.
"There's lots to work out, and Arsenal aren't in any rush. They're determined to get someone who's perfect for the job, who works very well with Arteta, and they're willing to bide their time to do that. Conversations I've had, I wouldn't be shocked if six months down the line that it's not an absolute done deal at that point. Ideally, they will have someone in ready to go for the summer transfer window, and I imagine they will, but there isn't any rush for it at the moment.
Watts: 'Edu did a very, very good job at Arsenal'
"Roberto Olabe is an interesting one from Sociedad. I think he's very highly respected. He's had very good working relationships with Arsenal over the last few years, speaks good English, knows Arteta, signed Arteta way back when, and so there is a relationship there. I'm sure he will be one under consideration because he's going to be available, but again, I could not sit here right now and say who it's going to be because Arsenal don't know who it's going to be. It's going to be a very in-depth search to get the best person who's possibly available."
During his time in the boardroom, Edu helped to oversee Arsenal's transformation from struggling to qualify for the Europa League to challenging for the Premier League title, thanks in no small part to some shrewd moves in the transfer market.
The Brazilian helped broker deals for the likes of Declan Rice and Martin Odegaard, while also securing contract renewals for the latter, Bukayo Saka, Gabriel Martinelli, Ben White, Gabriel Magalhaes and William Saliba.
Watts believes it goes without saying that Arsenal are in a better position now than before Edu took up his position, and he has warned the Gunners that "real trouble" could ensue if they fail to hire the right man to step into his shoes.
"Arteta and Edu had a really excellent relationship and it worked very, very well," Watts concluded. "Although Arteta probably takes most of the credit for what's happened at Arsenal over the last few years, I think the easy question for Edu is, were they in a better shape when he left than when he arrived? And undoubtedly, yes, they were. He did a very, very good job.
"Whoever comes in is going to need to continue on from that job. It's one of the most important positions in a club, isn't it? If you get the wrong person, then that can cause real trouble, especially if you get someone who comes in, he doesn't really get on with Mikel and they clash. Then you have difference of opinions at the top of the club. We know that that can lead to a very unstable football club. Arsenal have been stable for a good few years now, which is what the success has been built on.
"It's hugely important that they get the right guy. I think it's absolutely right that they take their time. They make sure that it's a proper, thorough process, and when they do make an appointment they are absolutely confident that it is the right one who's going to work well with Arteta and they're going to continue the good job that Edu built on. Massively important they get the right man."
Arsenal coincidentally host one of Edu's potential future clubs - Nottingham Forest - in Saturday's Premier League showdown, and Watts also provided the latest on Leandro Trossard's injury scare ahead the visit of the Tricky Trees.