The project involves putting in new track sections for the street running rails that have suffered wear and tear.
VolkerRail carried out the first phase between 2013 and 2015.
The second phase works are expected to start in April 2018 and carry on across the network, during the summer periods (May to September) for the next three years.
In total, 11.5km of tracks will be replaced. This year work will be focussed between Middlewood and Hillsborough.
“The Sheffield Supertram is an important part of Sheffield’s public transport network, with 12 million journeys made each year. It is a key asset, providing a sustainable, environmentally-friendly alternative to the car and helping to support economic growth alongside other transport programmes in the city”, said SYPTE executive director Stephen Edwards.
John Pearson, general manager of VolkerRail’s Metro’s and Rail projects division, said: “We are delighted to continue redeveloping Sheffield’s Supertram network. This network is a key transportation link for commuters and we aim to ensure as little disruption as possible while we replace track along the routes.”