The site is home to libraries including central lending, children’s, local studies, home service and has the Library Theatre below ground.
On the third floor of the building is the Graves Gallery which displays historic and contemporary artworks by regional, national and international artists.
There was controversy in 2016 when the local authority put forward a proposal to turn the building into a five-star hotel after signing an investment deal with a Chinese manufacturing firm. These plans later collapsed.
Councillor Mohammed Mahroof, chair of the culture committee, said the council was determined to keep it as a public building with “cultural and community uses at its heart”.
“We want to ensure that Sheffield has public services that are modern, accessible, and serve all of our diverse communities, now, and for generations to come.
“To do that, we need to understand what a state-of-the-art service looks like, and what spaces and facilities are needed to deliver this,” he added.
Counterculture LLP, architects Carmody Groarke and structural conservation specialists ARUP have been brought in for the latest scheme.
They have also been tasked with uncovering the best options to keep the library and gallery financially and environmentally sustainable.
Sessions with groups who use the building will take place as well as speaking to people who do not.
The council said a number of options would then be put forward followed by a public consultation.