Staff at the landmark red-brick building at the bottom of The Moor have been told to expect a move next to the City Hall, where a new building will accommodate up to 800 staff.

A government spokesperson said: "The Department for Children, Schools and Families and the Department for Innovation, Universities and Skills have announced to staff that, subject to successful contractual negotiations, they will be moving offices in early 2011. The new office is expected to be on Holly Street, next to the City Hall, in Sheffield."

The Moorfoot offices and the former NUM HQ have been earmarked for demolition for some time. The choice of new offices came down to either Holly Street or the site of the former Hallam students' union opposite the railway station.

Council leaders welcomed the opportunity to maintain some momentum in the city centre at a time when private sector projects are stalling.

David Curtis, the council's interim executive director of development, environment and leisure, described it as "a very significant relocation" offering the prospect of realising one of the city centre's "magnificent seven" regeneration projects.





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