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The pop-rockers, fronted by award-winning singer-songwriter Sharleen Spiteri, will perform their greatest hits at Concert in the Gardens on 31 December.
The homegrown heroes announced the gig during a sold-out show at the Glasgow Hydro on Sunday.
The New Year's Eve performance will make them the first band to ever headline the festival three times.
It will also be their first performance at the event for almost 20 years, having last performed there in 2005.
Texas have produced 10 studio albums and sold more than 40 million records worldwide.
The band is best known for smash hits such as I Don't Want A Lover, Say What You Want, Black Eyed Boy and Inner Smile.
'Let's party for the New Year'
The band will be joined by fellow Scottish singer-songwriter Callum Beattie, with the event set to be hosted by comedian Susie McCabe.
Spiteri said: "We can't wait to play here for a third time. So, get on your glad rags and let's party for the New Year."
Around 45,000 revellers are expected to flock to the capital for Edinburgh's Hogmanay Street Party.
As well as the music and midnight fireworks display, there will also be street theatre performances, funfair rides, and food and drink stalls.
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Val Walker, City of Edinburgh Council culture and communities convener, said: "The capital's Hogmanay celebration is not only an Edinburgh tradition - it's world renowned.
"It will be wonderful to welcome back the iconic Texas performing a career-spanning set.
"With Edinburgh's own Callum Beattie joining them as a special guest, I'm delighted that this year's Concert in the Gardens has such a strong Scottish line-up.
"It promises to be a fantastic party to welcome 2025, where gig-goers will have unequalled views of midnight fireworks over Edinburgh Castle."
The full four-day Edinburgh's Hogmanay programme - which will also include a Night Afore Disco Party and First Footin' culture trail - is expected to be released in the coming weeks.