Blair enjoyed one of his high points as an Edinburgh player at the weekend as he scored the club's only try to help them defeat French giants Toulouse to reach the Heineken Cup semi-finals for the first time in their history.
A former Scotland captain, Blair started three matches in this year's RBS 6 Nations in which Andy Robinson's men finished with the Wooden Spoon.
And while he is strongly linked with a move to France, the 30-year-old insists he will give his all to Edinburgh while he remains in the capital.
Blair said: "It's been an honour to represent the club which, over the years, has helped me fulfil my ambitions of becoming a regular for my country and earning selection for the Lions.
"Rugby offers many opportunities and experiences and, while I believe that this may be one of the most exciting times to be an Edinburgh player, I don't want to regret not trying something different which I finally hang up my boots.
"I'd like to thank all of the supporters who have been great to me since I first joined. I'm absolutely committed to Edinburgh Rugby until the end of the season and will do everything in my power to go out on a high, while I remain absolutely committed to playing for Scotland."
Meanwhile Scotland coach Robinson will take charge of the Barbarians' squad scheduled to play National Two North champions Loughborough Students on 9 May.
Robinson, a Loughborough graduate, led the side to victory in the 1986 UAU Championships and also represented the Barbarians 11 times, leading the squad on tour to Japan in 1996.
The Barbarians will announce their final squad on 2 May. Robinson said: "I'm delighted to accept the invitation to coach the Barbarians in their match against Loughborough Students next month.
"I have many happy memories of my time at Loughborough and two of my sons, Olly and Eddy, are students there at the present."