The University will create places for 1,270 new apprentices over three years in areas of regional priority including physiotherapy and paramedic practice as well as digital and quantity surveying.
Sheffield Hallam will receive more than £500,000 following a successful bid to the Higher Education Funding Council for England (HEFCE).
The new degree apprenticeships will begin from September 2017 and will build on the current provision already offered by the University.
Sheffield Hallam is also involved in a second successful bid with the University of Sheffield to create a bespoke engineering programme for 90 apprentices.
Sheffield Hallam University vice-chancellor, Professor Chris Husbands, said: "Universities have a key role to play in driving innovation, economic growth and creating jobs.
"Sheffield Hallam has been a trailblazer in offering higher and degree apprenticeships in collaboration with key industry partners including Nestle and JCB.
"I am delighted the University has been awarded this funding to help us further develop our degree apprenticeship provision and help meet the skills requirements of our regional economy.
"We will work closely with HEFCE and industry partners to respond to this challenge to develop the very highest quality apprenticeships which allow talented young people to take this pioneering route, fully funded by industry."
The partnership bid with the University of Sheffield is the first cross-city university collaboration in engineering and will use the strengths of both universities to extend the engineering apprenticeship offer in the city in line with industry needs.
The project will use the expertise of the Sheffield Hallam University’s multi-disciplinary Materials and Engineering Research Institute (MERI) and the University of Sheffield’s Advanced Manufacturing Research Centre (AMRC) Training Centre.
Professor Sir Keith Burnett, vice-chancellor of the University of Sheffield, said: "Filling the skills gap in engineering is a crucial issue for the UK’s economy. Universities have an important part to play in developing this workforce that will play a key element in driving economic growth.
"I am delighted that the University of Sheffield is able to work with HEFCE and Sheffield Hallam University to develop this innovative new degree-level apprenticeship programme that will provide young people with an alternative route to higher education through the highest quality vocational qualifications."