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According to The Local, the Saving Grace star will head up the panel selected to choose the winner of the festival's top award, the Bronze Horse.
The event will also honour filmmaker Gus Van Sant, who directed Milk, Elephant and Paranoid Park.
"I am honoured to be serving as this year's jury president at the Stockholm International Film Festival. I'm especially excited that this year's festival is celebrating the extraordinary achievements of filmmaker Gus Van Sant," Hunter said.
Organisers of the festival called Hunter "one of the bravest and most nuanced actresses in American film".
The event, which will screen more than 20 films, kicks off on November 18.
More: Holly Hunter , Movies
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