The addition of the 30,000 m2 Meadowhall Leisure Hall will add restaurants, a cinema, a gym and other leisure attractions to the complex.
The extension will follow a £60m refurbishment that is already under way and due to complete at the end of 2017.
Sheffield City Council is expected to make a decision in spring 2017. The Leisure Hall would create 540 temporary jobs during its construction and up to 1,400 jobs once complete.
The plans are supported by Sheffield Chamber of Commerce, whose executive director Richard Wright said: “As consumers, retailers and Sheffield evolves, so too must Meadowhall. The Leisure Hall, however, goes much further. It will retain spend in the Sheffield City Region by ensuring residents do not need to travel out of the area to fulfill their shopping and leisure needs. The Leisure Hall will be a jewel in the Sheffield City Region’s crown, set amongst other equally important investments in this great city. We therefore welcome British Land’s exciting plans and lend them our wholehearted support. They will reinvigorate Meadowhall and serve as a catalyst for further investment in the region.”