Marc Overmars has ended speculation linking him with a return to Arsenal by extending his contract at Ajax through to June 2024.
The Gunners are searching for a technical director and reportedly turned attention to their former winger after missing out on Monchi, who opted to reunite with Sevilla following a spell at Roma.
Overmars appeared to be a strong alternative, having overseen the emergence of Matthijs de Ligt, Frenkie de Jong and more since being appointed director of football at Ajax in 2012.
The 45-year-old spent three seasons with the Gunners during his playing career and represented Netherlands at two World Cups.
"There are still plenty of challenges at Ajax and I'm having a good time here," said Overmars.
"We are taking steps with both the youth academy and the first team. From a sporting point of view, we still want to show a lot.
"What is also important to me is that it is nice to work with the people around me. I get pleasure and satisfaction from that."
Arsenal parted ways with head of recruitment Sven Mislintat in February.