It has announced that it will make £950,000 available this year for people to receive electronic care in their homes, compared with an average of £400,000 over the past three years.
The money will help to upgrade technology for some of the 700 existing recipients, install over 1,000 new telecare packages and expand the programme to support disability groups.
Councillor Paul Edie, convener for health and social care for the City of Edinburgh Council, said: "The £950,000 funding will free up thousands of extra bed days in hospitals and care homes. Telecare is a great example of modern technology enabling older people to stay in their own homes longer rather than needing hospital treatment or going into care homes.
"Allowing them to lead more independent lives and making them feel safer at home can only be a positive step."
The council predicted that the funding will help to save 3,000 hospital bed days and 3,000 care homes beds, to support people living in their own homes and 700 carers.
Edie added that the funding will also help to extend telecare into families suffering from domestic abuse.
