Sheffield City Council have accepted a grant of £548,000 from the Police and Crime Commissioner to tackle drug-related crime.
A report which outlines the grant states the money is to fund the CJIT, criminal justice integrated team, which helps criminals get drug treatment in custody and court.
Not accepting the money would increase drug-related crime in Sheffield, said Simon Finney, author of the report. As the team will not have as many resources to engage people in treatment.
Mr Finney added that currently 23 per cent those engaged in drug treatment in Sheffield have come through the CJIT, which has been in action since 2006.
He said: "Drug use and drug related crime have a greater impact on the poorest and most deprived communities, so their work helps to tackle inequalities, contribute to more thriving neighbourhoods and improves the health and wellbeing of its services users."
The report said the aim of CJIT is "to engage drug using offenders into drug treatment at every stage of the criminal justice system" and added: "There is plenty of evidence to show that engaging drug using offenders in drug treatment will reduce drug related offending, reducing re-offending rates and reducing crime."
The Council has received funding for the CJIT since 2006 from either the PCC or the Home Office.
As the money is over £500,000 it is considered a key decision by the Council.