Stagecoach Supertram tweeted that the service is currently suspended between Tinsley and Parkgate due to a tram failure.
They expect the service to be suspended until at least midday.
Following the suspension of services, Supertram have said that tickets will be accepted on First and Stagecoach services.
A spokesperson said: “Due a vehicle issue, the Tram Train service is currently suspended.
“We apologise for any inconvenience. Tickets are valid on First and Stagecoach services in affected areas.”
Train passengers are also facing extensive delays this morning due to a points failure at a Sheffield railway station which is causing ‘disruption on all lines'.