The decision to hang up his boots will see the club's record appearance holder bring down the curtain on a 16-year professional playing career.
Jacobsen called time on a 65-cap Scotland career in November and will play for the last time after 285 club appearances against the team whom he marked his double century against in 2008.
Jacobsen, 34, said: "It's sad when you think about it, but I've got so many great memories from playing for Edinburgh and Scotland.
"I've done most of the things I wanted to do on the rugby field and I feel very lucky. I don't feel like I have to chase anything anymore, or prove anything.
"It's been a massive part of my life since I played for Edinburgh Under-16s, and that was 20 years ago.
"You have to stop playing sometime and, for me, that time is now. It's time for me to move on with the rest of my life, return to my trade and probably start my own business."
Interim head coach Stevie Scott added: "To stay at the top of the game for 16 years is an incredible achievement.
"He's had a remarkable career; taking over from someone like Tom Smith as the most capped Scotland prop, and signing off as by far and away the longest-serving Edinburgh Rugby player - a record I think he'll hold on to for quite some time.
"He's been a tremendous servant to the club, to Scotland, and to Scottish Rugby as a whole, and on behalf of Edinburgh Rugby I'd like to wish him every success in the future."