The 29-year-old loose-head first joined the club as an apprentice in 2004 and made 55 appearances before moving to the English Premiership in 2007.
In four seasons at Gloucester he reached the league playoffs twice (final in 2007 and semi-final in 2008) and the Heineken Cup quarter-final in 2008, before signing for Sale Sharks three years later.
In a nine-year professional playing career, Dickinson has amassed 141 top-flight club appearances as well as 24 caps for his country, making him an experienced addition to the Edinburgh Rugby ranks in the prime of his propping years.
Dickinson is the third internationalist signed by the club for next season, with Tongan hooker Aleki Lutui and Scotland wing Nikki Walker also committed to bring their extensive experience to Murrayfield this summer.
Dickinson said: "I'm delighted to have signed a new deal for Edinburgh Rugby, and to return to Scotland.
"I've learned a huge amount from my time in the English Premiership and believe I'm coming back to the club a completely different and much improved player.
"I'm looking forward to putting that into practice for the club who gave me my first chance in professional rugby, alongside some quality players in the front-row."
Dickinson earned his first Scotland cap by virtue of an injury call up to the 2007 Rugby World Cup after the soon-to-be-retired prop Allan Jacobsen, was ruled out.
His second cap followed a year later in the Calcutta Cup victory at Murrayfield, before making his first start in the championship against France in Paris after eight replacement appearances.
He scored his first try for Scotland in the EMC Test win against Italy before Scotland set off for the 2011 Rugby World Cup in New Zealand, his second outing in the Cup competition.
Interim Edinburgh Rugby head coach, Stevie Scott, said: "Alasdair is a quality, international rugby player in a key position.
"He's someone I've worked with for a long time, bringing him from Gloucester to Sale for two years, and am now looking forward to working with him again.
"He does everything by the book to get the best out of himself and what he can contribute to the team so, from that point of view, he will be a great addition to Edinburgh Rugby next season."
ALASDAIR DICKINSON (29) - prop
Born: 11.9.83 in Dundee
Height: 6ft 1in (1.86m), weight: 17st 7lb (111kg)
International honours: 24 caps (Scotland)
Professional club appearances (141):
Edinburgh Rugby: 55
Gloucester: 64
Sale Sharks: 22
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