In a statement, the Treasury said that chancellor George Osborne would today sign a deal with civic leaders from South Yorkshire "that will see it vote for a new directly-elected mayor", who will be elected for the first time in 2017 by voters across South Yorkshire.
According to the statement, the mayor will oversee a range of powers devolved from government, "including responsibility over transport budgets; franchised bus services and strategic planning".
The devolution deal comes after 38 local authority consortia submitted devolution bids to the Treasury last month. Northern Powerhouse minister James Wharton told Planning's Planning for Housing conference last week that devolution bids must recognise a need to increase housing supply.
A statement issued by the Sheffield City Region said that its devolution deal would include "a strategic approach to planning decisions across the city region enabling more housing and creating more jobs through more aligned planning processes and powers".
James Newman, chair of the Sheffield City Region local enterprise partnership, said: "For too long Whitehall has been in control of major decisions affecting local places on important issues such as transport, skills, regeneration and infrastructure improvements. This deal goes some way to redressing this imbalance."