Smith Rowe has penned a new long-term deal with Arsenal to end speculation he could leave Emirates Stadium this summer.
Aston Villa had been keen on signing the 20-year-old and had failed with bids of £25million and £30m.
Arsenal had never planned to sell Smith Rowe, who previously had two years to run on his contract, and Edu believes the attacking midfielder has a big future.
“This is another important step forward for us and we’re all delighted that Emile has signed a new long-term contract,” he said.
“It’s great to see another young player develop through our academy system to become a key part of our first team.
“Emile is a player who represents the future of the club and this is why we have given him the No10 shirt.
“We have trust in Emile and we know he has the potential to be a beautiful player for many years to come.”
Manager Mikel Arteta said: “As we all saw last season, Emile is an intelligent player with excellent ability. His sharpness on the turn and exceptional vision have already made him a key player for us.
“His attitude and willingness to learn have also been very impressive.
“Huge credit to our team in our academy who have given Emile a great education and have worked superbly to help with his development through the age groups.
“Along with the first team staff, huge credit also goes to our senior players, who have played such an important role to help Emile develop, gain confidence and perform the way he did last season.
"I know the fans will join us in being delighted that Emile has committed his future to the Club. We’re now looking forward to helping him develop further and seeing him become even more important to the strong young team we’re building.”