Laidlaw, who has one year remaining on his current contract, is one of Edinburgh Rugby's most consistent performers and was named players' player of the season before continuing his form with two man-of-the-match awards from four games; against Newcastle Falcons in pre-season and against Ospreys on RaboDirect PRO12 duty last weekend.
Such performances reinforced Michael Bradley's decision to name the lively Borderer as club captain, two weeks before his sixth season at the club kicked off.
Laidlaw said: "I'm really happy to be staying at Edinburgh Rugby for another two years. There's a lot of good feeling and exciting changes happening off the pitch while we're about to start a new chapter under head coach Michael Bradley.
"There are a lot of good young players coming though the club and I think that if we can build on their ability we can progress as a club, improve our league position and build our crowd and support."
After captaining Scotland A in wins over the Ireland Wolfhounds (32-13) and Italy A (11-3) earlier this year, Laidlaw capped off arguably his most successful rugby season with selection in Andy Robinson's provisional Rugby World Cup squad, earning his second cap in the 10-6 win over Ireland in the EMC Test.
However, despite missing out on final Scotland squad selection for the international event, the 25-year-old underlined his belief that his international ambitions are best served at the capital club.
He added: "One of the big pros for me as an individual is that I believe I can best push my case and promote my aspirations for Scotland selection by playing at Edinburgh Rugby.
"Being named as captain also played a big part in re-signing as it's important to me and my own ambitions to be a leader. I'm a young captain so I think it will be good for me in the years to come."
Edinburgh Rugby head coach Michael Bradley, added: "The quality of Greig [Laidlaw] as a rugby player and a leader has already shown through this season. He leads by example and sets very high standards for himself and others; that is the critical element.
"He's an extremely hard working individual and has reacted very positively to what we are trying to do at the club and the part he can play, through his leadership and performance, in helping this club grow and prosper."
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