Stead, 30, joins City on loan until the end of the season.
Subject to receiving the relevant clearances from The F.A and the Football League, the 6' 3'' experienced forward will now go into City's squad for this Saturday's match at Leyton Orient.
Stead's move to the Coral Windows Stadium comes on loan transfer deadline day. Football League clubs won't be able to add to their squads at all once today's 5:00pm deadline has passed.
The forward has previously played in League 1 this season as recently as last month following a loan period with Oldham Athletic.
Stead will wear number 17 during his time with Valley Parade.
After starting his career with home-town club Huddersfield back in 2002, the influential striker went on to enjoy productive spells with Blackburn Rovers, Sunderland, Sheffield United, Ipswich Town and Bristol City before returning to the Terriers in the summer.
Stead becomes the seventh loan player currently in Parkinson's squad.