Father-and-son team Michel and Alain Roux will overee a total transformation of the site at the corner of Princes Street and North Bridge.
The spaces currently occupied by Hadrian’s Brasserie and the Balmoral Bar will be turned into a 210-cover restaurant and bar before the yet-to-named venture opens in May.
The hotel, part of the chain spearheaded by Sir Rocco Forte, already boasts one Michelin Star-rated restaurant, Number One at the Balmoral.
The new eaterie will be the latest boost to the booming culinary scene in the east end of the city centre, which has seen a host of new arrivals on and around St Andrew Square over the last couple of years.
The Balmoral’s new restaurant will also mark the first joint venture between the Roux and Forte families.
Michal Roux and his brother Albert shot to fame in London in the 1960s with their restaurant Le Gavroche, where the likes of Marco Pierre White, Gordon Ramsay, Marcus Wareing, Bryn Williams, Michael Smith and Monica Galetti all worked in the kitchen.
They went on to found The Waterside Inn, in Berkshire, in 1972, where Michel’s son Alain is current chet patron.
It is the only restaurant in the world outside France to have held three Michelin stars for more than 30 years.
Richard Cooke, the hotel’s general manager, said: “I’m honoured to welcome Michel and Alain Roux to The Balmoral and the wider Rocco Forte family.
Michel’s role in developing British gastronomy has been felt over the course of several decades and his experience and guidance is immeasurable.
“Alain, who continues to develop his father’s culinary evolution, brings impressive talent and vision to this exciting new project.
“The new brasserie concept will be the perfect complement to our existing culinary offering, and completes a five-year refurbishment plan.
“Our guests and visitors will truly experience five-star dining and service in every corner of the hotel.”
Michel Roux said: “The new brasserie marks a unique alliance between the Roux and Forte families.
“As leaders in our fields, our families are committed to excellence, impeccable service and promoting the next generation with my son, Alain leading the restaurant.
“We are thrilled to be opening in Edinburgh, the epicentre of Scottish culture and a thoroughly modern city.
“We’re fascinated with its proud past and delighted to be part of its vibrant future as we join forces with the award-winning and iconic Balmoral.”
Alain Roux added: “This exciting new brasserie will be defined by a seasonally changing menu rooted in French bistro dishes, in the classic modern style, irresistibly simple, delicious food.
“We will be led by the fantastic array of Scottish ingredients and flavours to include beautiful seafood platters and tasty sharing plates at the bar.
“I want to serve the dishes that I love to cook myself at home and seek out with family and friends when we go out to eat. It will be an exciting menu, informed by my French heritage but totally inspired by Scotland.”