The distinctive yellow bike, which is one of 1,000 available across the city to hire for 50p per half-hour, was discovered this afternoon by a bemused resident who lives at flats on Nunnery Court, in Park Hill.
The bike was not damaged and has since been collected and placed back into circulation by Ofo, the company behind the dockless bike hire scheme, which claimed this was a sign of the bikes' popularity.
Adam Rose, the firm's operations manager in Sheffield, said: "Very occasionally, and usually in the first couple of weeks in a new city, we have customers attempt to store bikes on private property so that they'll always be available to use.
"This is flattering but we prefer people to share, so our marshals are dispatched to retrieve them when this happens and put them back into circulation. Our bikes are in strong demand in Sheffield and the reception so far has been really positive."
The Star reported earlier this week how a number of the bikes had been found vandalised and abandoned around Manor and Arbourthorne.
Ofo responded by saying it would not allow a 'tiny minority' of people to ruin a scheme which was proving so popular in the city.
The bikes have previously been introduced in Cambridge, Oxford, London and Norwich.
Users can download a free app to locate the nearest bike and unlock it before locking it up again and leaving it anywhere in the city having finished their journey.