The former Gunners and Juventus midfielder has given early notification of his intention to step down from the role as head of the north London club's youth development
Brady was appointed as the head of youth development at the north London club in 1996 and has overseen the development of players such as Ashley Cole, Jack Wilshere and Kieran Gibbs. The 56-year-old has opted to give early notice of his decision in order to help in the recruitment of a successor for the role.
Speaking to the club's official website, Arsenal chief executive Ivan Gazidis said: "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. He has made a massive contribution to Arsenal Football Club.
"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."
A former Republic of Ireland international, Brady had spells at Arsenal, Juventus, Inter, Ascoli and West Ham. He has also had spells in management, as coach of Celtic and Brighton and Hove Albion, as well as a period as assistant manager to Republic of Ireland manager Giovanni Trapattoni.