Freddie Ljungberg will remain in Arsenal as part of Mikel Arteta’s backroom coaching staff.
Ljungberg played for Arsenal between 1998 and 2007 before he became caretaker when Unai Emery was sacked last month.
The Swede stepped down on Sunday when fellow former Gunners player, Mikel Arteta, was appointed and began duties as head coach.
“I spoke to Freddie after the [Everton] game,” Arteta said. “I told him my idea and the people I wanted to bring to form my coaching staff, their roles and responsibilities of each of them.
“I wanted to know what he was feeling, I wanted to know what he had in mind, what his expectations were. We talked and we made a decision that the best thing was for him to stay with us.
“I think he knows the players, he knows the situation, he knows the history of where we’re coming from and also his knowledge of the game is going to really help us to be better.”
Arteta has not named his coaching staff yet but it is suspected Everton and Manchester United assistant boss Steve Round will be part of the staff.