The £515,000 masterplan aims to improve the estate, built in the 1950s and 1960s, with an up-grading of public spaces and improving the quality of the estate.
It is hoped the redevelopment of the estate, which was once hailed for its design and quality, will encourage regeneration in the area.
Cabinet member for housing at Sheffield City Council Jayne Dunn said: "Gleadless Valley has a strong community and it’s an area people care passionately about. But it’s true to say that the area is in need of investment.
"We always knew this work would be needed but this extra funding means the planning can start much sooner than we’d otherwise been able to. It’s about improving the quality of housing and bringing in other improvements to benefit Gleadless Valley and everyone living there."
The council will develop the masterplan in consultation with residents.
A spokeswoman said it will be developed by in-house landscape architects, or through the council’s existing framework agreement.
The estate was developed in landscaped grounds as this 1963 image shows. Image: Sheffield City Council
Chair of the Gleadless Valley Tenants and Residents Association Sally Dale said: "This is wonderful news for the Gleadless Valley community."
There are 2,600 council homes on the Gleadless Valley estate, with some small areas of owner-occupied properties. Sheffield Council sourced funding from the Department of Communities and Local Government, and the Homes and Communities Agency’s ‘Estate Regeneration Fund’.