The 23-year-old Scotland flanker has committed to the Murrayfield club until 2016 on the same day Edinburgh recruited East Auckland stand-off Tony Fenner on a month-long loan deal.
Press Association Sport understands Denton had seriously weighed up strong contract offers from both Leicester and Gloucester.
But the 17-cap back-rower has revealed the impact of new coaching trio Alan Solomons, Omar Mouneimne and Stevie Scott convinced him to sign on again.
"I've really enjoyed my time at Edinburgh and I think the new coaching team has been a great change for the club," Denton told Edinburgh's official club website.
"They've been a big influence on me already.
"I've a huge amount of respect for them and I think they are the right people to take this club forward.
"There is a very bright future for this club and I want to be part of it."
Denton arrived at Edinburgh Rugby in the 2010/11 season following a successful spell for Scotland Under-20s and Scotland Sevens.
A year later he earned his first Scotland cap as a replacement in the 10-6 Rugby World Cup warm-up victory over Ireland (10-6).
South African coach Solomons joined Edinburgh in the summer, and has quickly swept the broom of change through the Scottish regional outfit.
"This news is massively important for both Edinburgh and Scotland," said Solomons.
"David is blessed with wonderful physical attributes. He's a big, powerful, explosive athlete and a tremendous ball carrier.
"What is important for me, however, is his willingness to up his work-rate and to get involved in facets other than the ball carrying, for which he is renowned.
"He has a very promising career ahead of him. He has made a tremendous contribution already this season and will go on to play a very big part in this club going forward.
"I think it is wonderful that he has committed to us."
Meanwhile, former England schoolboys international Fenner has signed on after Harry Leonard was ruled out for the rest of 2013 with a thigh tear, which saw him join fellow fly-halves Gregor Hunter (knee) and Piers Francis (foot) on the sidelines.
Solomons, said: "He will now feature in our plans for some huge games this month, first against Leinster - a massively powerful Irish province - and then in our derby matches against our rivals Glasgow Warriors. It's a big opportunity for him."
- Sports & Recreation
- Alan Solomons
- Edinburgh Rugby