The New Zealand-born flanker was out of contract in the summer, but has decided to extend his stay in the Capital after an injury-hit campaign.
The 28-year-old joined Edinburgh in 2015 from the Highlanders and has made 19 appearances for the BT Murrayfield outfit. He has been capped 15 times by Scotland.
Hardie played for the first time in two months when he came on as a replacement in Edinburgh’s 24-20 win over the Dragons on Friday night. His season has been punctuated by ankle and knee injuries, but he will now hope to be involved in Scotland’s summer tour of Australia, Singapore and Fiji before returning to Edinburgh to play under new head coach Richard Cockerill.
Hardie told Edinburgh’s official website: “I’m looking forward to another year at Edinburgh. The club has been great to me since I arrived a few years ago and I’ve loved every minute playing alongside the boys.
“It’s been a disappointing season for us all, but we’ve got a good squad and the potential to really kick on next season. There’s a good mix of youth and experience and we should really benefit from that going forward.”
Acting Head Coach Duncan Hodge said: “It’s great news for the club and Scottish rugby that John has committed to Edinburgh for another year.
“He’s an outstanding openside and gives everything for the shirt every time he takes to the field.
“It’s a real boost to the squad to add further depth to a highly-competitive back-row ahead of next season and we’re looking forward to seeing the players thrive in that environment next year.”