Edmondson, who remains on bail on suspicion of illegal phone hacking while at the now-defunct Sunday tabloid, joins Loaded after it was recently taken over by adult films entrepreneur Paul Baxendale-Walker.
A spokesman for Baxendale-Walker confirmed that Edmondson would take over from the magazine's current editor Andy Sherwood.
Speaking to the London Evening Standard, Edmondson said that he wanted to take Loaded "back to the glory days".
"I want to get Loaded back to the glory days of the nineties. I want it to re-establish its 'bad-boy' image, when it used to put Liam Gallagher on the cover," he said.
"It's all very well having pretty girls on the front but people can get that for free on the internet. I'd love to have Joey Barton on the front cover. I'm also going to introduce politics because I think men are interested in it."
Loaded, which was bought by the now-collapsed Vitality in 2010 from IPC Publishing, has recently seen monthly circulation drop 30% to 34,505, according to ABC figures. This was down from more than 350,000 at the height of the 'lads mag' boom in 2000.
Baxendale-Walker is keen to use the title to marry his adult businesses with mainstream media. He also intends to launch two Loaded TV channels.
Edmondson was suspended from the News of the World in January last year following allegations that he may have instructed private investigator Glenn Mulcaire to intercept the voicemails of high-profile individuals. He was arrested in April 2011, but has not been charged with any offence.