The former midfielder has been a favourite to replace Sven Mislintat for a number of months and appears to have come a step closer to the Emirates
Edu has been replaced by Juninho as general coordinator of Brazil amid reports he is set to become Arsenal's technical director.
Edu, 41, is reportedly set to return to the Premier League club, who he played for between 2000 and 2005.
The former Brazil international will reportedly become technical director, days after his nation secured the Copa America.
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In a statement on Monday, the Brazilian Football Confederation (CBF) confirmed director of football development Juninho – who played for the likes of Atletico Madrid and Middlesbrough – would replace Edu.