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Australia won the third Test in Melbourne to take a commanding lead in the series.
Head will not play in the fourth Test after testing positive for Covid-19.
Head must stay in Melbourne for seven days and be isolated.
The final Test of the England and Australia series is due to start at the SCG on January 5.
Head is the first player to test positive for a drug.
Chris Silverwood, the England men's head coach, was forced to stay away from the England camp for 10 days after a family member tested positive.
Three support staff and four family members are among the seven cases of England's touring party so far.
In the first three Tests, Head has scored a total of 258 runs at an average of 62, including a knock of 152 in the series opener in Brisbane.
Cricket Australia expects him to be available for the final Test in Hobart.
Mitchell Marsh, Nic Maddinson, and Josh Inglis have joined the Australia squad.
The future of Australia's Big Bash League is in doubt due to more Covid cases.
The game is going on despite four players testing positive.
The game is likely to take place under the level five protocols, which require the players to stay separate from each other and the batting group to be no more than three.
The next game of the Stars is in serious doubt after seven players and eight support staff tested positive.
