Members of Save Our Green Open Spaces said they would carry on fighting despite Sheffield Council approving its own planning application to carry out works at the site, including the creation of a three-bay car park within the Sharrow site.
The number of parking bays was reduced from 13 to threeÂ after more than 900 people signed two petitions but campaigners have said they will continue to fight against the proposals.
Jim Dimond, of SOGOS, said: 'There are a number of issues and there is a local campaign in opposition to get the car park stopped because we see it as misguiding on a number of different levels.
'From a heritage point of view, because of its listed status,the site is Sheffield's equivalent of London's Highgate Cemetery.
'Punching a hole through the wall and then building a car park would ruin it completely and it would be disrespectful because it's where a lot of people are buried.'
Sheffield Council also received a Â£3 million grant from the Heritage Lottery Fund in July to carry outÂ major restoration work at the Sharrow site '“Â conserving heritage and improving facilities and access.
The authority said the plans would see the site removed from Historic England's '˜Heritage at Risk' register and make the park more accessible and welcoming for users.
But Mr Dimond said: 'There is a lot going on behind the scenes and it's something we still intend toÂ pursue most vigorously.
"We support the Heritage Lottery Fund money but we want the money to be spent on maintenance and upkeep of the monuments and grounds.
"If the council use any of that money for the car park, it's then got to be policed. We don't want to be responsible for the council losing that money but the HLF states it can only be used to protect, conserve and preserve and building a car park goes against that criteria.'