The former midfielder had previously been the club’s technical director, focusing on the men’s and women’s teams, but his responsibilities now extend to the academy.
This is the first time the Gunners have employed a sporting director and is also a promotion for Edu, who has been in contract talks with Arsenal for a number of weeks.
Arsenal chief executive Vinai Venkatesham said: “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, and we look forward to Per and Edu working together to strengthen the integration between our men’s first-team and academy yet further.”
Arsenal’s academy manager, Per Mertesacker, will remain in place and the plan is for him to work closely with Edu.
The club have successfully integrated academy players into the first-team recently and the hope is Edu working with Mertesacker will build on that.
“I’m delighted to have this new role which I see as an evolution and consolidation of the way we’ve been working,” said Edu.