The next phase of the large grade II listed estate will see existing flats converted into 350 student bedrooms for occupation in the 2020/21 academic year.
Enabling works are set to start in the next few weeks with a main contractor due to be named shortly for the main work to start early in the new year.
The proposals for the block to the north of Talbot Street also include the potential for ground-floor shops or gym.
This space will be managed by Urban Splash and forms part of the Park Hill masterplan vision.
It is expected that Phase 3 will bring an investment of around £20m to Sheffield, with around 100 people employed in the delivery.
David Campbell, Managing Director of Alumno Developments, said: “Park Hill has played an important role in Sheffield’s past, and is an amazing historical structure.
“We want to respect this and make a positive contribution to the Estate’s future by making new investment, bringing additional life and vibrancy to the local community.
Work is expected to start early next year.