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Otago Regional Council chief executive Sarah Gardner released a statement today saying Cr Woodhead suffered a "small stroke'' last Tuesday.
"The effects are limited to his right leg and right arm. Stephen is walking unassisted and expected to make a full recovery.
His intellect, face and speech were not affected, she said.
He was being treated by a physiotherapist this week at the ISIS centre at Wakari Hospital, she said.
Mrs Gardner said she was working with the council's deputy chairwoman Gretchen Robertson and fellow councillors to ensure its political activities continued as normal.
Cr Woodhead, a South Otago sheep and beef farmer, was first elected to council in 2004 and appointed chairman in 2010.
According to the council's website he owns a sheep and beef farm at Milton, and was previously Chairman of Local Government New Zealand’s Regional Sector Group.
His community service has included involvement with the Otago Youth Adventure Trust, Milton Rotary Club, and the Tokomairiro A and P Society.