The 40-year-old, a player at the Capital outfit for two spells between 1994-2003 and 2005-2007, was later handed a part-time coaching role at Edinburgh, Glasgow Warriors and the national team before going full-time in 2012.
Hodge, capped 26 times by Scotland, will join head coach Alan Solomons and assistant coach Stevie Scott in the management team at Edinburgh.
Solomons said today: “Duncan is a first-class bloke who I have no doubt will add value to the club as we look to continue our progress.”
Hodge currently in New Zealand alongside Currie coach Ben Cairns as recipients of the John Macphail Coaching Scholarship, said: “I want to coach, to be able to help young Scottish players get better and I feel incredibly lucky to have the opportunity to do that at a club that means so much to me.
“I spent many happy years with Edinburgh as a player and know a lot of the current players well, through my role with the Scotland national squad. To get to work with the players throughout the season, as opposed to short bursts, will be great and I’m really looking forward to developing as a coach with Alan and working alongside Stevie.”