Hodgson, 21, graduates to his first professional contract and signs the deal in partnership with Super 6 club, Watsonians.
On putting pen-to-paper, Hodgson, said: “I’ve loved my time at Edinburgh and I’m absolutely delighted to have signed for another year.
“I’m looking forward to developing further as a player, while it has been great being able to watch my childhood club continuously grow both on and off the park.”
Former Scotland U20 vice-captain, Hodgson, broke in to the capital side’s starting XV this season while still enrolled in the Fosroc Scottish Rugby Academy.
After making his debut in the Guinness PRO14 encounter away to Zebre last October, the former Stewart’s Melville College captain marked his first home appearance with a bonus-point win over Scarlets at BT Murrayfield just a week later.
Hodgson has to date made four appearances for the capital side, while the second-row helped Watsonians to a fifth-place finish in this year’s Tennent’s Premiership, with the Myreside outfit narrowly missing out on the play-offs.
Head Coach Richard Cockerill, added: “Jamie has worked tirelessly in both the gym and on the training paddock and is thoroughly deserving of his first professional deal with the club.
“He’s a determined young second-row that is still learning the game and we’re looking forward to watching him continue his development as a rugby player.”