Plans have been submitted to the Government for the nine councils in South Yorkshire, north Derbyshire and north Nottinghamshire to take over major powers governing areas of the local economy.
Sheffield City Region would establish a ‘combined authority’ having powers over economic development, regeneration and transport.
If the Government agrees, the body – which would cover 1.8 million people and an economy generating £25 billion a year – would be established by next April.
Sheffield Council leader Coun Julie Dore said: “The city region authority is an important step forward.
“It demonstrates that by working together we can deliver real benefits for residents across our districts.”
The authority would focus on moving money and power away from the Government, rather than taking functions from existing councils.