Kawakubo will design a men's and women's range for H&M and will also create selected kidswear lines and accessories which will launch this autumn. A unisex fragrance will also be included in the collaboration.
The range will launch at the opening of H&M's second store in Tokyo in Japan at the beginning of November. The line will debut in other markets a few days later.
H&M creative advisor, Margareta van den Bosch said: "Rei Kawakubo has been at the top of our wish list for a long time and we are thrilled that she has chosed to collaborate with us. We have tremendous respect for Kawakubo's fashion philosophy of questioning fashion's ingrained patterns, and admire her artistic approach to design. We are particularly excited that the collection will be launched in Japan, Kawakubo's native country, at the same time as the launch of our new store there."
Commes des Garçons was founded in 1973. It is best known for its use of distressed fabrics and a monochrome pallette which challenge the idea that fashion has to be traditionally sexy.
H&M has done several seasonal collaborations with designers including Roberto Cavalli and Stella McCartney. The tie ups have attracted huge publicity and pulled in big crowds to its stores for the launch.