The 21-storey mixed-use development next to the Jurys Inn hotel at Furnival Square will offer 412-bed spaces for students above ground floor and first floor offices.
The site was previously the home of Office World, which has now been demolished after previous planning for an office scheme was granted.
McAleer & Rushe will act as both developer and builder on the project, which has been designed by architect Urban Innovations and will use a brick cladding system for the building envelope.
A report in support of the fresh plans for the site submitted by WSP said that while the level of office development has been reduced compared to the previously approved scheme, it believed that any harm from the reduction in office space was outweighed by the overall benefits of the scheme, including the level of student accommodation given that the development is located adjacent to Sheffield Hallam University in a highly sustainable location.