Work is scheduled to start on the Trippet Lane site in September with the project due for completion in time for the new academic year in September 2017.
The seven-storey scheme will accommodate 63 students in a mixture of studios and one- to three-bedroom apartments with a gym, meeting rooms, a secure courtyard, a common room and TV room.
The site is in the centre of the city, close to the University of Sheffield's North Campus, and is owned by Empiric Student Property.
The all-Leeds team on the project also includes Niemen Architects, Voke Consulting and Simba Consulting.
APP Construction director John White said: "We're looking forward to getting up and running following the completion of an extensive archaeological survey at the site. This modern scheme will offer Sheffield's university population some of the highest quality accommodation when it is finished next year."
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