The collaboration - the first between Edinburgh and an FE college - is aimed at widening access for students from families who do not have a tradition of going to university.
Lauder students who complete one-year HNC and two-year HND courses in applied sciences and electronics and electrical engineering will automatically be considered for entry to Edinburgh University. The agreement also encourages greater collaboration between teaching staff.
Professor Grahame Bulfield, head of Edinburgh's College of Science and Engineering, said: "We hope to encourage all students with potential to maximise their opportunities. Prospects are excellent in science and engineering and this link will ensure that choices for students are increased."
Janet Lowe, principal of Lauder College, said: "Our staff will work together to create exciting and valuable progression opportunities for students now and for the future."