Marcelo Flores has joined Mexican side, Club Tigres UANL in a permanent transfer on a four year deal.
The highly-regarded attacking midfielder, 19, has been on the Gunners' books since 2019, and spent last season on loan at Real Oviedo in Spain.
Tigres sit second in the top league in Mexico after the first seven games of the 2023-24 campaign, ahead of next weekend's match away at Atlas.
Although born in Canada, Marcelo is a senior Mexico international. The teenager made his debut against Chile in December 2021, and has a total of three caps for his country.
The 19-year-old midfielder joined the Gunners academy in February 2019 from Ipswich Town and went on to sign his first professional contract with the club in October 2020.
The move will allow Marcelo to move closer to his sister Silvana Flores, 21, who is a midfielder for Liga MX Femenil club Monterrey, the city's rival team to Flores.
Flores was named as a substitute in the Premier League fixture against Crystal Palace in April 2022 but never made a first team appearance.
The 2022-2023 season, saw Marcelo in the second tier of Spanish football, where he spent some valuable time on loan with Real Oviedo, making 15 appearances in all competitions.
Arsenal said in a statement: "We thank Marcelo for his contribution to the club and wish him all the best with Club Tigres UANL."