Laidlaw was voted player of the season by his team-mates at the end of last term before being named skipper ahead of his sixth campaign at the club.
The 25-year-old was included in Scotland's provisional World Cup squad and featured in the warm-up win over Ireland last month, but was left behind after being beaten to a place by Mike Blair, Chris Cusiter and Rory Lawson, who have all captained the national team in recent years.
But Laidlaw believes his international prospects are best served playing for Edinburgh.
"One of the big pros for me as an individual is that I believe I can best push my case and promote my aspirations for Scotland selection by playing at Edinburgh Rugby," he said.
"Being named as captain also played a big part in re-signing as it's important to me and my own ambitions to be a leader.
"I'm a young captain so I think it will be good for me in the years to come."
Laidlaw added: "There's a lot of good feeling and exciting changes happening off the pitch while we're about to start a new chapter under head coach Michael Bradley.
"There are a lot of good young players coming though the club and I think that if we can build on their ability we can progress as a club, improve our league position and build our crowd and support."
Bradley believes Laidlaw's leadership skills have shone through already this season.
Bradley said: "He leads by example and sets very high standards for himself and others; that is the critical element."
Gilbert has released a new line of rugby cleats. The Gilbert Virtuo 8S is part of the exciting new product. Check it out.
The entire All Blacks apparel line has been updated for 2013/14. Check out the New Zealand All Blacks polo.
The Nike Tiempo is a solid rugby cleat and one of few styles still made from full-grain natural leather.
The Gilbert Blitz 8S rugby cleat is a great cleat at a great price of $69.99. Get a new pair of cleats today.
A cool looking all black rugby cleat with the high performance adidas is known for. Get in the Gear!
Wear the crest of the British and Irish Lions on your t-shirt. A great look for the summer.
The All Blacks Performance t-shirt is black with hints of blue from the training jersey. Very Cool.
The New Zealand All Blacks training jersey for 2013/14. Get in the Gear!
The USA Rugby Pro Alternate rugby jersey is perfect for any fan of the Eagles. Get yours to wear during the summer Test matches.
The NEW All Blacks 2013/14 jersey has arrived at World Rugby Shop. Dare to wear the colors of the All Blacks.