Edwards spent three years playing at Headingley before joining the club's backroom staff, guiding the side's academy to the Yorkshire Cup.
Having helped develop the careers of a number of the graduates through the academy system at Headingley, the 38-year-old joined the RFU last summer.
Edwards has acted as the assistant to England Under-20 head coach Rob Hunter this year, helping the side to the RBS Six Nations title.
Edwards, though, will now return to Leeds following this month's IRB Junior World Championship in Italy.
Edwards, who also played for Wakefield, Leicester, Otley and Castleford RL, said: "I would like to thank Rob Andrew, Stuart Lancaster [Head of Elite Player Development], Kevin Bowring [Head of Elite Coach Development] and everyone at the RFU for the opportunity to work within a world-class organisation for the past year.
"I feel that I have developed a great deal in the last 12 months and helping the England U20s achieve a Grand Slam this season was a particular highlight for me.
"However, the chance to come back to my club and help return us to the top flight was too good to resist and I feel the timing is right for me as a coach."
RFU rugby operations director Rob Andrew hailed the impact Edwards has had on the national academy over the past 12 months.
He said: "Diccon's made a very positive impact in the short time he's been with us, working with some very talented young players and helping mould a side that won a Six Nations Grand Slam this season.
"The opportunity to take charge at Leeds Carnegie is an exciting one for him and he leaves the RFU with our best wishes and thanks.
"Our elite coach development programme continues to add value to coaches and it is good to see another coach gain from his experience with the RFU and be offered an opportunity with a top club."
Edwards replaces Neil Back at Carnegie after the World Cup winner quit the club in the aftermath of their relegation from the Premiership.
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