The motorist was spotted by officers on patrol in Cultins Road in Sighthill as part of a three-day crackdown on speeding.
Officers checked her details and found that she had been banned earlier this year after racking up 12 penalty points.
The Mercedes ML300 was seized under the Road Traffic Act and could be forfeited if she the woman convicted of driving without a licence.
Around 30 motorists were caught speeding in Lothian on Friday, Saturday and Sunday as police clamped down on drivers flouting the law.
Among the offenders was a woman caught driving at 71mph in a 40mph zone with three young children in her car.
Meanwhile, officers caught a 17-year-old from Tranent driving on the A1 near Wallyford at 101mph at 9.50pm on Sunday. The teenager was also reported to the procurator fiscal.
Chief Superintendent Derek Robertson said: “I am shocked and dismayed at the level of speeding and inappropriate driving which my fellow officers have dealt with during the three days of the campaign.
“The links between excessive speed and collisions causing death or serious injury are clear and those who flout the speed limits put themselves and others at risk.
“This has only reaffirmed the intention to continue our focus on irresponsible drivers, to make sure speed limits are acknowledged and the roads are made safer for everyone in Scotland.”
The police have the power to seize vehicles when they suspect the driver is uninsured, does not have a licence or in drink-driving cases.
City transport leader Lesley Hinds welcomed the move to seize the motorist’s car.
She said: “This person was driving without a licence and, because she was banned, without insurance as well and while using a mobile phone. Some drivers put other road users at risk and believe they can get away with it. She was well aware that she should not be driving.
“The driver caught going at 71mph in a 40mph zone with children in her car is disgraceful. She was putting both other road users and the children in danger.
“These are examples of why the police need to carry road checks and I welcome their efforts.”
Across Scotland, 1837 drivers were caught breaking the speed limit during the campaign. In addition, another 62 were reported for driving dangerously or carelessly during the campaign organised by the Association of Chief Police Officers in Scotland.
Among the worst offenders nationwide were a 21-year-old man travelling at 114mph in Aberdeenshire, and a man detected doing 95mph through road works on the M90 in Fife.