He will be the WRU Writer in Residence for 2012 with two more artists taking up residencies for years two and three of the initiative.
Owen Sheers will become embedded in the structure of the game in Wales to express his own observations of our national sport in writing.
His remit will involve both the elite and community games: all aspects of the sport.
As part of the residency Owen Sheers will shadow the national squad to observe the work that goes on behind the scenes as they build up to games and will also be able to choose any other aspect of the game to record and describe.
The partnership has been unveiled by the Group Chief Executive of the Welsh Rugby Union and the Chairman of the Arts Council of Wales, Professor Dai Smith.
It will be a jointly supported initiative and future artists will be selected to complete the project in other artistic disciplines before the completion of the project.
Owen Sheers will begin work in the New Year in time to observe the Wales senior squad prepare for and play in the 2012 RBS 6 Nations Tournament.
He said: "Traditionally the physical and intellectual cultures of Wales have always been close cousins, so I'm thrilled to be involved in a project that promises to foster an ongoing relationship between rugby and the arts. For a writer this is a particularly exciting time to be observing rugby in Wales, especially at the elite level when such a young, exciting squad has already captured the world's imagination at the World Cup.
"I think we all recognise that 2012 is a year full of potential for the Welsh team and I feel privileged to have been given this opportunity to witness their journey at close quarters.
"Given my recent work on The Passion in Port Talbot, and my current project with the Theatre Royal Haymarket and Bravo 22 Company, working with wounded soldiers to create a play about their lives, this position with the WRU feels like a very natural step in my writing life - writing informed not by my own experience, but by the experiences of others.
"I'm greatly looking forward to gleaning the stories of those involved in Welsh rugby with a view to creating work which will hopefully not only give readers an insight into this world, but also heighten their own experiences of watching and playing the game."
This is the first time Welsh rugby has recruited a recognised writer from outside the disciplines of historic record or sporting coverage to create a body of work about the game in Wales.
The Group Chief Executive of the Welsh Rugby Union, Roger Lewis said:"We are delighted to have secured the services of a writer as exciting as Owen Sheers for this project. Without doubt he is one of Wales' literary stars.
"The work he has already published across a range of artistic disciplines displays a talent and power of observation which will undoubtedly help him create work of great interest and significance, in and beyond Wales.
"Great art, like sport, has the power to change people's perceptions of the surrounding world for the greater good - it is a civilising influence.
"Welsh rugby is far more than just a game in Wales and we believe the wider impact it has on our culture and daily lives should be captured and interpreted in many ways.
"This project will help the people of Wales achieve a greater understanding and insight of what rugby means to us all and will also explain how the modern game relates to our wider society.
"All of us who work in Welsh rugby see the amazing range of activity and effort which goes into the game and I know the public will be fascinated to learn about what Owen observes.
"The Welsh Rugby Union spans the elite game, the community game and, of course, owns and operates the Millennium Stadium so the range of activity is enormous.
"The drama involved in our game is unquestioned as anyone who visits the stadium on international match day will know.
"We all recall the day in Rugby World Cup 2011 when 62,000 people packed the stadium to watch a Wales game being played 12,000 miles away. I suggest an artist and writer of Owen's calibre will be able to interpret events like that in a way which will make them last in our memories forever."
The Chair of the Arts Council for Wales, Prof Dai Smith, said: "Arts Council of Wales is delighted to be working in partnership with the Welsh Rugby Union on this first ever Artist in Residence project for our national game. The programme is part of a wider arts strategic policy that seeks to enable the arts to express and celebrate the ethos and character of Welsh society, to facilitate cultural excellence through linking the arts and sport, as well as to attract new audiences for both rugby and the arts.
"We are really excited about Owen's appointment. This is the first time any national team in the world has been involved with an Artist in Residence and Owen's discoveries for us, I know will be tremendous. He will capture so much of what goes on here at the stadium both on and off the field.
"I think mixing art and sport is a stimulating proposition, and the art of rugby is something that I'm personally very passionate about. Owen is an award-winning poet and novelist, an exciting talent whose work is known and followed around the world. He's a real live-wire, and a mover-and-shaker on the arts scene, to boot. I'm positive that his creative spirit will thrive and will open our minds to possibilities beyond the rugby field."
WalesCaptain Sam Warburton added: "As players we are fully aware of the interest the game generates and it will be fascinating to see what Owen creates about the lives we all lead.
"All of us know that being part of Welsh rugby is special and we also know how important it is to the lives of the people of Wales who follow the sport.
"An incredible amount of structure and hard work goes into the modern game at all levels and this project will record some of that in a fascinating way."