The former Arsenal midfielder Liam Brady will step down as head of the club's youth academy by May 2014.
Arsenal said they will be discussing other potential roles with the 56-year-old former Republic of Ireland international to ensure he continues his involvement with the club.
"Liam has a deep understanding of what it takes to discover and develop a talented youngster into someone who can perform at the highest level," said the club's chief executive, Ivan Gazidis.
"He has made a massive contribution to Arsenal. It will be difficult to find a worthy successor but we will be looking for someone who can build on what Liam and his team have created."
Brady started his career with Arsenal as a schoolboy in 1971 and made his professional debut in 1973. He also played for Italian clubs Juventus, Sampdoria, Internazionale and Ascoli before ending his career at West Ham United.
He managed Celtic and Brighton and Hove Albion before taking over Arsenal's academy where he developed current first-team players such as Jack Wilshere and Kieran Gibbs as well as the England defender Ashley Cole.
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