Its is claimed in the English and Spanish press that Valencia have signed a pre-contact with Edu and will move to the Mestalla at the end of the season.
The Brazilian has been stalling over inking a new deal at Highbury for several months.
Barcelona, Real Madrid and Manchester United have all been suggested as potential suitors of the 26-year-old, but it now appears that Valencia have won the chase for his signature.
“He prefers to play in Valencia rather than in Madrid or Barcelona,” a Valencia spokesperson told Marca.
Edu joined The Gunners in 2001 in a £6 million deal from Corinthians, and his form last term saw him rewarded with full international recognition from Brazil.
However, a combination of injury and his failure to agree a new deal has seen him fall from favour this season and his future has been the subject of speculation for some time.