The former midfielder joined Arsenal in 2019 as technical director after working for the Brazilian Football Association and will now take charge of academy activities in addition to his existing responsibilities across men's and women's football.
"I'm delighted to have this new role which I see as an evolution and consolidation of the way we've been working," Edu said in a statement.
"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."
"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," Chief Executive Vinai Venkatesham added.
Arsenal are top of the Premier League standings with 37 points from 14 games, five ahead of defending champions Manchester City while the league pauses for the World Cup.
