| Hugo is currently with the national training squad ahead of the Rugby World Cup following a season which was disrupted by a shoulder injury sustained in Scotland's Six Nations match against Ireland in March.
Speaking on his new contract, Hugo Southwell said: "I'm staying at Edinburgh because I'm enjoying playing here and I'm keen to help the club win, hopefully starting next year. There is every reason to believe we can be near the top of the Magners League this coming season and with the new signings, we can even progress further.
"I am optimistic about the future of Edinburgh Rugby and pleased with the visions of the new owners and where we're going."
Edinburgh's backs coach Rob Moffat said: "It is good that Hugo is with us for a further year, especially following other signings we've made such as Stephen Larkham and Mike Blair who has also extended his contract with Edinburgh. We have a lot of younger players joining us this season and so we need a balance, and given he is a first class professional, his attitude will help the younger members of the squad.
"Hugo is a consistent player who works hard at his game, but the exciting thing is he'll continue to develop and I think his best rugby is still in front of him."
Alex Carruthers, Executive Chairman, added: "Hugo is now one of our senior players, being an ever-present player both for Edinburgh and Scotland which is demonstrated by his winning 30 consecutive international caps before he was injured. He is regarded as a key element of our team looking ahead to the next couple of seasons, providing the drive and determination required to move the squad forward. We look forward to seeing his contribution both on the pitch and in the training environment on his return from the World Cup."
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