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8 year oldThe 38-year-old Henry, who worked with Arsenal's youth players as part of his Uefa A Licence course, was not prepared to give up his media work.
Former Gunners captain Tony Adams, 49, will take over as under-18s coach.
Steve Bould will remain as Wenger's assistant while Freddie Ljungberg will work with the under-16s.
Henry, Arsenal's all-time leading scorer, must now find a team to coach in order to complete his Pro Licence.
The former France forward is employed as a television pundit by Sky Sports and worked for BBC Sport during Euro 2016.
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