The Scotland star will return to Edinburgh for the 2008/09 season after finding game-time hard to come by during his single year at Guinness Premiership giants Gloucester.

His lack of action for Dean Ryan's team cost him his place in the Scotland side which started the 2008 RBS 6 Nations against France at Murrayfield.

But former Scotland captain Paterson admits that the talented young stars he left behind a year ago have developed into fine first-team players – and are threats to his position at either stand-off, wing or full-back.

He said: "I'm delighted to be going back to Edinburgh. I moved on last summer and I have learnt a lot from my year at Gloucester, but my opportunities there have been limited, so I'm delighted to have the chance to come home.

"Edinburgh has moved on incredibly over the past 12 months and it is going to be a huge challenge for me to fight for a place.

"From talking to the players, everyone is so excited about finally having some continuity at the club and they are absolutely delighted with the coaching staff.

"They feel as if everyone is pushing for a place and it is a genuine club atmosphere. Most of the texts I received from Edinburgh players were good, apart from Ally Hogg, who asked me if I wanted showing around on my first day - which I found quite funny."