In the past seven years the 28 year-old has made 136 appearances for the club and earned 27 caps for his country to date, and leaves to continue a tradition of Scottish scrum-halves at the west country club that has included Bryan Redpath and Rory Lawson.
Greig Laidlaw, said: "I'd like to thank everyone involved in Edinburgh Rugby for their support over seven fantastic seasons at Murrayfield.
"I've taken great pride from playing and captaining the team in some memorable matches, something which I'll never forget.
"Naturally I'm excited about the next chapter of my career however my focus is completely on putting my best rugby into the RBS 6 Nations championship and delivering a strong finish for Edinburgh Rugby in the RaboDirect PRO12."
Despite Laidlaw's departure the club are anticipating heightened competition in the position, with a promising set of Scottish scrum-halves waiting in the wings.
Scotland A capped pair Sean Kennedy (22) and Grayson Hart (25) - who scored twice in the club's win over Ospreys on Friday night - and Sam Hidalgo-Clyne (20) have all impressed in the position this season, with the window of opportunity now wide open.
Edinburgh Rugby head coach Alan Solomons, said: "Greig [Laidlaw] has made a great contribution this season, both as a captain and as a player, but I also understand he feels that, at this time in his career, something new and fresh will be good for him.
"Greig has been fantastic for us but this move clearly opens the door for the three quality young Scottish scrum-halves that we have at the club.
"He goes absolutely with our blessing. We wish him well and we thank him for the terrific contribution he has made to the club."
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