Per Mertesacker will retire from football at the end of next season and become Arsenal's academy manager.
The 6ft 6in German, who boasts more than 100 international caps, will remain an integral part of Arsene Wenger's squad during the coming season while continuing to develop his knowledge and understanding of Arsenal's academy.
Current academy boss Luke Hobbs, who replaced Andries Jonker when he left to manage Wolfsburg last spring, will remain in the role for the 2017/18 season.
Arsenal club captain Mertesacker told the club's website: "This is the start of an exciting new chapter for me and I am delighted that I will be able to stay part of the Arsenal family.
"This season I will remain fully focused on my job with the team and am looking forward to a successful last season on the pitch.
"After that, I look forward to the exciting challenge of helping produce young players good enough to play for the Arsenal first team."
Manager Arsene Wenger added: "Per is an exceptional character who is a great example for young players.
"He is a deep thinker about the game and committed to helping players fulfil their potential. He will be an inspirational figure for everyone connected with the academy."