The 41-year-old, who made 127 appearances for the Gunners over five seasons between 2000 and 2005, will be responsible for player scouting and squad recruitment.
Edu’s brief will also involve coordinating the club’s first-team coaching staff and work within the academy.
Edu has become Arsenal’s new technical director after the Brazilian Football Federation appointed Juninho to his general coordinator post
Edu made over 100 appearances for the Gunners during five seasons at the club
Arsenal made the announcement of Edu’s appointment on their social media on Tuesday
Brazil confirmed that Juninho had been appointed to replace Edu as the national side’s general coordinator following their successful Copa America on home soil.
Edu said: Arsenal has always had a special place in my heart and I’m thrilled to be returning to this great club in this new role.
‘We have a strong squad and some very talented young players with fantastic people at every level. I’m looking forward to helping make a difference.’
Edu pictured at Arsenal’s Emirates Stadium during a visit to London back in 2011
Edu leaves his post with the Brazil team having seen them win the Copa America last weekend
Edu at Arsenal
RECORD PER SEASON
5 appearances, 0 goals
27 appearances, 3 goals
29 appearances, 3 goals
48 appearances, 7 goals
18 appearances, 2 goals
Premier League 2001-02, 2003-04
FA Cup 2001-02, 2004-05
Community Shield 2002
Arsenal Head of football Raul Sanllehi said: ‘We’re very excited that Edu is joining the team. He has great experience and technical football knowledge and most importantly is a true Arsenal man.
‘He understands the club and what we stand for to our millions of fans around the world.
‘His arrival is the final and very important part of the jigsaw in our development of a new football infrastructure to take us forward.
‘He will be working closely with Unai Emery and the first-team coaches, and will play a relevant role leading our football vision and ensuring we have – and follow – a solid philosophy through all our football activities.’
Central midfielder Edu made 127 appearances for Arsenal over five seasons having signed from Corinthians in 2000.
During his time with the Gunners, he helped them win two Premier League titles – including as part of the ‘Invincibles’ team in 2003-04 – and the FA Cup twice.
Sportsmail understands that the Brazil federation agreed to waive a £6million compensation fee, which would have been a significant obstacle given Arsenal’s tight finances this summer.
Arsenal’s head of football Raul Sanllehi turned to Edu after a move for famed talent-spotter Monchi fell through after the Spaniard chose to return to Sevilla.
Edu will be expected to work within a restricted budget to recruit players following three consecutive seasons without Champions League football.