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"I'm really happy to be staying at Edinburgh Rugby. 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," said Laidlaw, who was named man of the match in last weekend's last-gasp league defeat to the Ospreys having narrowly missed out on selection for Scotland's 30-man World Cup squad.
"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.
"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.
"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."
Bradley, who was appointed Edinburgh boss at the end of last season following the dismissal of Rob Moffatt and the return to Australia of Nick Scrivener, is equally pleased to retain the services of one of his most consistent performers as he looks to build a squad capable of challenging for honours in both the Rabo Direct Pro 12 and in the Heineken Cup.
"The quality of Greig as a rugby player and a leader has already shown through this season," added Bradley.
"He leads by example and sets very high standards for himself and others - that is the critical element.
"He's an extremely hard working individual and has reacted very positively to what we are trying to do at the club and the part he can play, through his leadership and performance, in helping this club grow and prosper."
Edinburgh have only made the knockout stages of Europe's premier competition on one occasion but Bradley and co will be hoping to change that this season after being drawn in a pool with no clear cut favourite.
Racing Metro 92 have some major names in their ranks but have played just one season of Heineken Cup rugby; Cardiff Blues have seen director of rugby Dai Young depart for Wasps and London Irish have begun the English Premiership season with two defeats on the bounce.
