The 30-year-old man who was killed has been named by locals as 30-year-old father-of-two Khuram Javed.
The University of Sheffield law graduate, who is believed to have worked as a solicitor at a law firm on London Road, was fatally shot in Clough Road close to Bramall Lane at around 9.40pm on Saturday.
Mr Javed was discovered by officers with life-threatening injuries consistent with firearms discharge. He was sadly pronounced dead at the scene.
A 31-year-old man was found with minor gunshot wounds. He was taken to hospital.
An investigation has been launched to find those responsible.
Detective Chief Inspector Michael Hakin said: "Officers have been carrying out extensive enquiries overnight and we can now confirm that we are investigating a murder following a firearms discharge in Clough Road, Sheffield.
"The investigation is still in its early stages, but our enquiries continue at pace. A significant number of officers remain in the area.
"I would urge anyone with information about what happened to come forward. If you think you might have witnessed the incident or if you saw or heard anything suspicious, please speak to us. If you were driving in the area at the time, do you think you may have dashcam footage that could support our investigation?
"I am acutely aware that this incident may be distressing to the local community. Please be assured that we have deployed additional resources to the area, and our specialist team continues to carry out enquiries to locate those responsible.
Pakistan Muslim Centre's Allama Iqbal Sunday Cricket League posted a tribute to Mr Javed on their Facebook page.
It said: "It is with great sadness to inform you that our beloved brother Khuram Javed has returned to Allah. Can you please make dua (a prayer) that Allah grants Khuram janat al firdos (the highest paradise) and gives his family sabr (patience)."
Anyone with information is urged to call police on 101 quoting incident number 984 of April 10.
Alternatively, you can call Crimestoppers anonymously on 0800 555 111