South Yorkshire Passenger Transport Executive (SYPTE) will replace life expired sections of rail within street running elements of the network.
The works will be delivered by SYPTE in partnership with Stagecoach (the operators) and Sheffield City Council.
Visiting the city yesterday, transport minister Baroness Kramer said: “An efficient and reliable transport system is critical to any city. The Sheffield Supertram network is an important local feature: it contributes significantly to the growth of the local economy and provides reliable and frequent links to many of the key employment, regeneration and development areas in Sheffield."
The minister also visited the site of the planned Tinsley Viaduct, which will form part of the £28m bus rapid transit scheme that will improve links between Sheffield and Rotherham.