A post on the programme's official Facebook page has confirmed the flame-haired star has filmed a cameo in the show.
The message read: "Look who's been spotted in Summer Bay!
"Yep, your eyes do not deceive you, world renowned singer/songwriter, Ed Sheeran, recently visited the Palm Beach and Eveleigh sets of Channel 5's Home and Away to film scenes for an upcoming episode.
"He will appear as himself in the series, but storyline details about what brings Ed to Summer Bay are being kept under wraps for now.
"Ed's episode will screen later this year... (sic)"
The singer has also admitted he would love to star in further soaps closer to home.
Speaking about 'Home and Away' to news.com.au, he said: "It's an Australian instituation. It's always on in my local chip shop.
"I got asked to do it and it sounded like it could be fun. I did 'Shortland Street' in New Zealand as well and I'm sure if 'Emmerdale' or 'EastEnders' ever ask me in England I would do that as well.
"I have got a point where I really, really don't care what people think so I'm doing stuff because I enjoy it now rather than because it might be cool. I am just in it for fun."
- Bang! Showbiz