She will take over responsibility for the retailer's product design from departing brand director Sim Scavazza on September 1.
Yusuf, whose temperament has been described as 'grand', was acclaimed in her role as Marks & Spencer creative director for womenswear, where she spearheaded the launch of the Limited collection. She resigned from M&S in September 2004 after three and a half years.
She was appointed chief executive of niche fashion retailer East last year, with a remit to double its size. However, she left the company after just seven months at the post, amid a downturn in clothing sales.
Arcadia group operations director Mike Goring, who has been with the business for over a decade, will take managerial and operational responsibility for Miss Selfridge.