The 65-year-old South African is in his third season at Edinburgh after extending his initial two-year contract earlier this year.
The former Ulster and Northampton coach has led Edinburgh to two eighth-place finishes in the Guinness Pro12 and to the final of last season’s European Challenge Cup.
Solomons said: “While we have made good progress over the past two seasons, we still have some way to go and I am pleased to be able to continue to build on what we have achieved.”
Now that the coach has been tied up, the club and Scottish Rugby will look to address the situation that sees 32 of Solomons players out of contract at the end of this season.
Scottish Rugby chief executive Mark Dodson said: “Alan is successfully building on the improved performances achieved by Edinburgh Rugby last season, which saw them reach the European Challenge Cup Final and secure the 1872 Cup.
“The club has made a positive start to the new season and we wanted to ensure Alan was able to continue to develop the vision he started in 2013. We are therefore very pleased he has committed to Edinburgh through to 2017.”