It is understood the council will grant permission to sell the land to Gleeson Homes on Wednesday, 13 January.
The developer is planning to build 103 two, three and four-bedroom properties at Freston Road and Queen Mary Road.
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Construction is expected to take three to four years and will create 156 jobs.
Councillor Jayne Dunn: "This is fantastic news for the city – attracting local firms like Gleeson to start building on the Manor estate to help us bring about the wider regeneration of the area, and providing much needed homes for sale and local apprenticeships and jobs."
A Gleeson Homes spokesperson added: "As a Sheffield based company we are delighted to be constructing homes in the Manor area of our city."
The developer added it would invest £9 million through the course of the project in employment, materials and subcontractor expenditure.
(LM/CD)
