The 48-year-old will be part of a three-man team, alongside scout Francis Cagigao and the still vacant sporting director role.
Morrow, who is a former Northern Ireland international, will be expected to play a major part in the new set-up put in place to to help boss Unai Emery.
Arsenal find themselves in a tricky position following the departure of head of recruitment Sven Mislintat.
They appeared confident they were going to confirm Monchi’s appointment until a change of heart by the Spaniard forced the Arsenal to seek alternatives.
Arsenal have made a surprise appointment after they were dealt a snub by Monchi (Image: GETTY)
Steve Morrow, who is currently head of youth scouting, is in line for a big promotion (Image: GETTY)
Monchi opted to return to Sevilla, the club where he made his name (Image: GETTY)
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Another person tipped for the role was former club legend Marc Overmars.
However, the Dutchman also snubbed Arsenal’s offer instead choosing to stay as technical director of Ajax.
Concerned that Arsenal might tempt Overmars to return to the club where he made his name, Ajax increased his salary to a reported £800,000 per year.
Arsenal are now back to square one with their director of football Raul Sanllehi once again looking to fill the vacant position.
According to the Mirror former Barcelona colleagues Antoni Zubizaretta and Robert Fernandez are tipped for positions.