The Brazilian chief, who won five major honours during his time at Highbury as a player, had been the club's technical director since 2019.
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In his three years since returning to north London, the 44-year-old was responsible for liaising between the first team and the academy, as well as player scouting and having a hand in recruitment.
With Arsenal sitting pretty at the top of the Premier League table, it was reported how two major European clubs were keen to snare him away after being left impressed by his work.
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But Arsenal Invincible Edu has decided to carry on his love affair with the club where he has been promoted to a new role.
It will see him combine his current responsibilities across both men's and women's football.
He will also oversee all academy activities where he will closely with academy manager Per Mertesacker.
Speaking to Arsenal's website, Edu said: "I'm delighted to have this new role which I see as an evolution and consolidation of the way we've been working.
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"We are making good progress in all areas of our men's, women's and academy and we are all excited about what can be achieved.
"I look forward to building on the hard work of so many people and helping all of us grow together and enjoy more success.
"And [I] am thankful for the trust the club has put in me.
"We move forward together."
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Chief Executive Vinai Venkatesham added: "We are delighted that Edu is recommitting his future to the club that he so clearly loves, after making such a positive and critical contribution to our progress in his time with us so far.
"Edu's promotion formalises his already growing influence over our Academy operations.
"We look forward to Per and Edu working together to strengthen the integration between our men's first-team and academy yet further."
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