Stead, a club legend who won two league titles during a glittering career with the Owlerton club, announced his retirement at the weekend and the bosses moved quickly to ask him to stay at Owlerton.
He will be working closely with the riders on bike set-up, riding technique and winter preparation and fitness ahead of a big 2017 campaign.
Club co-promoter Damien Bates said: “It’s been a good few days for the club with the news about Simon’s appointment and the signing of Josh Grajczonek.
“We haven’t had one negative comment on our social media platforms and it underlines just how popular Steady is with the Sheffield people.
“We’ve got two more riders to name, we are almost there with them, we know who we want and we could well have our entire team in place by the end of the week.”
Stead has thanked fans for their messages over the last few days – both on his retirement and new appointment.
“It’s been amazing and I’d like to thank all the fans, sponsors, management and riders who I’ve raced against and with down the years, it’s been amazing,” he said.
“Now I’m looking forward to this next challenge and getting the last two team members announced.”
Stead has also thanked the club for giving him the opportunity to stay involved.
“I’d like to thank Sheffield for giving me this opportunity and I can’t wait to start working with the lads,” he said.
“I personally enjoyed riding for Sheffield when we had Joe Screen (former Grand Prix rider) in charge. He was good to listen to and spoke the same language about bike set-up and things like that.
“I’ve proved that I am still one of the fastest guys around Owlerton, so if I can pass on that experience and knowledge to the Sheffield team then that’s a great plus.”