Stead, 31, penned his loan deal with the club this Friday and, subject to receiving the relevant clearances, will now go into City boss Phil Parkinson's squad for the Sheffield United fixture.
The striker, who trained with the rest of the squad this Friday morning, has signed with City until 3 January 2015.
The move marks the start of Stead's second spell at the Coral Windows Stadium after the forward spent the final five weeks of last season with the Bantams.
Before his return to City, Stead has already made nine appearances for Huddersfield this season, scoring twice for the Terriers in the process.
Speaking about his move, Stead said: "It has all come a bit of out the blue really but it was an easy decision to come back.
"I obviously know the management staff and a lot of the players already from my time at Bradford last season and it was a straight forward choice to make the move back here.
"I am looking forward to playing games here and helping the team again. I really enjoyed it here last season and I'm ready to play my part again."
Now back at Bradford, Stead's first three games with City in League 1 could all be against former clubs.
Stead, who will wear shirt number 16, added: "That's football for you really - it throws up funny situations.
"Obviously playing against Sheffield United, Bristol City and Oldham Athletic in a short space of time coming up - all old clubs of mine - it is funny how the fixture list works sometimes.
"They are three difficult games but games we can bounce back in following the disappointment the club felt at Barnsley last time out.
"The Sheffield United game - whether I'm selected or not - is going to be a massive atmosphere.
"Like a lot of people, I watched the Leeds United cup game on Sky earlier this season and it was a fantastic occasion, and I'm sure the supporters will be out in force again on Saturday.
"Whatever part I play, I am looking forward to the game. I am fit and raring to go, so bring it on"