"Since its inception, Selfridges has been a company renowned for architectural innovation and excellence," said Chipperfield in a statement. "To be involved with the major redesign of its landmark flagship store on Oxford Street is therefore both a challenge and a fantastic opportunity to contribute to its future."
According to Selfridges, the redesign will create the world's largest accessories retail department by combining the sections for men and women into a 4600-square-metre space on the ground floor.
The project will also include a double-height entrance on Duke Street, which runs perpendicular to Oxford Street on the east side of the building.
The original Beaux-Arts building was designed in 1909 by Daniel Burnham, the American architect behind the Flatiron Building in New York.
"This is the next chapter of our journey to realise the full architectural and retail potential of Selfridges, with the aim to continue to surprise, amaze and amuse our customers for decades to come," said Selfridges managing director Anne Pitcher.
Work on the redevelopment is due to start at the end of June and is set to complete within five years.
David Chipperfield was announced as the winner of the competition to design a new home for the Nobel Prize in Stockholm and is on the shortlist to oversee the rebuild of London's Crystal Palace.
This year Selfridges has hosted an immersive experience that matches visitors with a scent and the Imagine Shop, which featured our Dezeen Watch Store augmented reality pop-up.
Photograph is by Andrew Meredith.