Montemurro, who also coached Melbourne Victory in the W-League, led City to two titles from 2015-2017 - their first two seasons in the league.

Incredibly, City went through their first season undefeated.

He then expanded his role to be an assistant in the men's side and will leave his role as chief assistant to Melbourne City's men's team to join Arsenal.

"I'd like to take this opportunity to thank the players and the staff at Melbourne City for the incredible opportunities and the memories. The club has always been supportive and allowed me to develop and grow both professionally and personally," Montemurro said in a statement.

Montemurro will reunite with City star Kim Little, who also plays for Arsenal.

Little told Arsenal's website that Montemurro was a great manager.

"I really enjoyed working with him previously and I think that he has the qualities that we need to help us achieve our goals, and ultimately win more trophies."

The 48-year-old Montemurro will replace Pedro Martinez Losa, who was in charge at Arsenal for three years.

Arsenal finished third in the 2016 Women's Super League 1 season, behind Chelsea and Manchester City.