Jorgensen will join Edinburgh on 1 July to commence pre-season training with the Gunners before embarking on his first Celtic League season. He is also going to be assistant fitness coach to Ken MacEwen.
Frank Hadden, head coach, said: "With the departure of Brendan Laney the signing of someone of Peter Jorgensen's experience and ability will prove an invaluable addition to our squad. I have followed his progress since I first saw him play for Stewart's Melville many years ago and I am confident that he has all the qualities to enhance the rugby we are trying to play at this club."
Peter Jorgensen said: "I am excited about coming up. I actually played in Edinburgh in 1993 for Stew Mel and I went back to Oz that year to rugby league. It has been a breath of fresh air, thinking that I will be able to get back up to Edinburgh to finish off my career. It is exciting to know I will be playing with such great calibre of players and I'm looking forward to getting back into the Heineken Cup."
Ken MacEwen said: "I am very much looking forward to Peter arriving and assisting me in the physical preparation of the Edinburgh players and academy players. The experience he has to offer in both codes of rugby can only enhance our existing conditioning programme here at Edinburgh Rugby."