The first phase of the masterplan will cost around £220m and will be delivered over the next five years, the university said.
It includes new buildings for the Business School and social sciences, refurbishing the students' union building, creating a University Green and improving the current estate.
BAM Construction will build three new buildings on the site of the recently demolished Science Park and adjoining car park, adjacent to Howard Street leading up from Sheffield railway station.
The University Green will provide 400 square metres of public space, with new trees planted.
Construction is due to start in early 2022 and be completed in the second half of 2023. The development is the first phase of wider plans to improve the city centre campus.
The campus plans have been developed with the help of BDP and Arup as designers, construction contractor BAM and CBRE providing facilities management input. The collaboration calls itself the Hallam Alliance.
BAM preconstruction director Paul Cleminson said: “We’ve handed over the Adsetts Library already, are making excellent progress with the new Atrium building, and this next phase is a major part of the Alliance’s objectives at the university’s campus. The emphasis on sustainability and green spaces is very significant. By combining development, design, construction and long-term thinking about how the buildings are operated, we are all making a big difference to the future of how the buildings are used for generations to come.”