An empty caretakers house will be converted into a nursery to cater for more children entitled to free childcare.
St Thomas of Canterbury School, in Meadowhead, has been awarded money from the Government to develop its pre-school facilities.
The school is only one of two providers in the city to have been successful in its bid for funding, which will allow it to cater for more children entitled to 30 hours of free childcare a week from September.
Executive headteacher Andrew Truby said: "It is wonderful for Sheffield that our school has been awarded DfE capital funding to develop our pre-school to be able to offer 30 hours places to three-year-olds.
"We are one of only two providers in Sheffield and a small number in the country to have been successful. At St Thomas of Canterbury, we have an empty caretaker’s house, which will be converted and extended over the summer to be able to accommodate additional children."
Head of school Liam Colclough said everyone at the school was 'incredibly excited' to have been awarded the funding.
"We know that the experiences and understanding of the world that we can give our children is unique and, with such a depth of high quality early year staff who live and breathe their job, I cannot think of a better place to send a child," he said.
"As a parent myself, the opportunity that the 30 hours places present are superb, and I am also proud to say that my eldest son already attends pre-school and does not stop talking about it."
Pre-school teacher Laura White added: "We have found that children are motivated to learn when they enter Pre-school and are keen to build on this because of our fantastic indoor and outdoor learning space.
"The children are inspired by the tools given to them by the dedicated teaching staff and enter reception as confident and enthused learners."
Places are still available for September - visit www.st-tc.co.uk