The artist, who has worked and exhibited for over 40 years and has pieces hanging in the Tate, the British Museum and the New York Guggenheim among others, was chosen by a panel of art-world figures including curator and consultant Gill Hedley and Pied Á Terre owner David Moore.
Head has been given free rein of the restaurant and kitchens with a view to creating works entirely inspired by the site's Fitzrovia Charlotte Street location. An exhibition of the pieces is expected to take place at the restaurant from October to December, with one work forming part of the restaurant's permanent collection, and the others put on sale.
It is planned that the position will last one year, after which another artist will take up the post.
Despite the novelty of the role, top-quality art is not an unusual sight at the restaurant, whose owner David Moore is also an art collector. Since the doors opened 21 years ago, Moore's many artistic friends have visited the restaurant regularly, and the in-house collection already includes works by Sir Peter Blake and Sir Howard Hodgkin.
Similarly, one of the restaurant's first investors was the late Richard Hamilton, who was not only considered by many to be a pioneering figure in the history of pop art, but was also a friend and tutor to Head, whose installations and works are to reflect that influence.
Of his new role, Head said: "This is a completely new and exciting environment for me to be working within. I am full of admiration for the forensic attention to detail and personal care that everyone brings to the place and in particular, Marcus Eaves, the Head Chef, who creatively nurtures and steers every dish that sails out of the kitchen."
Owner Moore said "Pied Á Terre has a long history of commitment to the arts. We have always been very keen on art and we have bought something each year. However, having done things in a slightly slapdash sort of way, we thought how much better it would be if we got someone to create an artwork from within.
"Our ‘Artist-in-Restaurant' programme allows Pied Á Terre to further underline its support of contemporary art. Although it poses many challenges, it offers the opportunity for the restaurant to renew and regenerate every year with the input of the artist."
Head has also designed a set of plates for the restaurant. His exhibition is scheduled to open on 8 October.
One of London's most well-known, successful restaurants, Pied Á Terre has held two Michelin stars on-and-off for 14 years, and has seen many of Britain's top chefs working at the pass, including Richard Neat, Tom Aikens and Shane Osborn as Head Chef.
Owner Moore, who himself worked as assistant restaurant manager at Raymond Blanc's Le Manoir Aux Quat'Saisons and appeared on Blanc's BBC show The Restaurant, opened sister restaurant L'Autre Pied in 2007.
Only last month he announced that he would be running a 10-month pop-up called Pied Nu on the former site of Simon Rogan's erstwhile Roganic.