He said: "It's awesome news, this caps off a good year for me.
"I've really enjoyed my time at Edinburgh Rugby and I think the new coaching team of Alan [Solomons], Omar [Mouneimne] and Stevie [Scott] has been a great change for the club.
"They've been a big influence on me already. I've a huge amount of respect for them and I think they are the right people to take this club forward.
"There is a very bright future for this club and I want to be part of it."
Denton arrived at Edinburgh Rugby in the 2010/11 season following a successful spell for Scotland under-20 and Scotland 7s.
A year later he earned his first Scotland cap as a replacement in the Rugby World Cup warm-up victory over Ireland (10-6).
After being rewarded with a two-year contract extension that Autumn, his bruising ball-carrying earned him a return to the international arena, heralded by his man-of-the-match winning performance against England in his first Scotland start.
He has continued to set the stage alight, as a mainstay for both club and country, and while injury blighted his 2012/13 campaign, the big blonde has been back to his best this season under Solomons.
"This news is massively important for both Edinburgh Rugby and Scotland," said Solomons.
"David is blessed with wonderful physical attributes. He's a big, powerful, explosive athlete and a tremendous ball carrier.
"What is important for me, however, is his willingness to up his work-rate and to get involved in facets other than the ball carrying, for which he is renowned.
"He has a very promising career ahead of him. He has made a tremendous contribution already this season and will go on to play a very big part in this club going forward.
"I think it is wonderful that he has committed to us."