Edinburgh head coach Andy Robinson said: "We want to compete at the highest level and to achieve that objective we have to have a world-class goal kicker. Unquestionably Mossy (as Chris is known) is a world-class goal-kicker.
"I felt that to move the squad forward that it was important to have a player of his ability in our ranks. We're signing him to compete for a place in two positions - full-back and stand-off.
"Having spoken with him I've been struck by his real desire to play for Edinburgh and with a player of his status available it increases our options to rotate our squad."
Gloucester's head coach Dean Ryan said: "Chris has been an outstanding professional both on and off the field since joining us after the World Cup and we wish him every success with this move.
"Though his starting opportunities have been limited, his dedication and versatility have been very influential within the squad. We still have some big games remaining this season and I'm sure Chris will have an important role to play in these."
Scotland head coach Frank Hadden said: "Edinburgh's supporters will be delighted to welcome back one of their all-time favourites. Mossy is an iconic figure in Scottish sport and I'm delighted that from the end of May he will back in Edinburgh.
"To capture Chris and Jim Hamilton is a signal of our intent to have as many of our best players as possible playing, training and under our strength, conditioning and medical care in Scotland."
Paterson, 30, capped 86 times, who has goaled successfully his last 33 kicks in international rugby and is currently two tries away from equalling the Scotland international record, is "excited" by his return to Edinburgh.
He said: "The circumstances in which I left Edinburgh have changed and I'm pleased to be able to come back and compete for a place.
"I feel as if my one year at Gloucester has made me a more knowledgeable player. I have learned so much and have been fortunate to work again with good coaches.
"So, I'd stress that the environment at Gloucester has been terrific for me and that I have learned a lot and I think when I've been on the field I've performed pretty well.
"Now I'm looking forward to working with Andy, Rob Moffat and all the players and support staff at Edinburgh to challenge for a place in the team and help some first-class rugby people achieve great things."
Gordon McKie, Scottish Rugby's Chief Executive added: "Chris is the ultimate role model, absolutely dedicated to producing his very best. I'm delighted that he will once again be playing for Edinburgh."
63x46.png){kind=logo}