The scheme has been recommended for approval after three rounds of consultation with locals, who say they have long struggled to park in the heavily congested neighbourhood.
Restrictions would comprise a mixture of permit-holder only parking, limited free parking, pay- and-display at 20p per hour, and shared parking bays.
Residents would pay 10 a year for their first permit and 30 for second cars, while businesses would pay 20 and 60 respectively.
John Bann, head of transport and highways at Sheffield Council, says in his report to the council's cabinet highways committee that plans to bring in parking permits in Hillsborough are "based on requests received over many years from residents and businesses."
Three consultations have been carried out and further representations were also received while the Traffic Regulation Order (TRO) giving notice of the scheme was advertised recently.
Due to feedback, minor alterations have been made to the boundaries of the scheme and Clarence Road will no longer be included.
Mr Bann said: "The scheme aims to better manage the available on-street parking in Hillsborough, making it easier for residents to park nearer their properties while also turning spaces over more frequently to help short-term parking for local businesses, as well as for visitors and shoppers to the area.
"During the advert period a total of 45 emails, 12 letters, approximately 40 phone calls and one petition were received with regard to the proposals. Of these, 15 were separate representations of support and 12 were objections.
"The petition included seven signatures of support and 39 signatures of objection. A number of emails – 12 generally in support and six generally not in support – asked further questions.
"A petition signed by 45 properties from Clarence Road, Dykes Hall Road, May Road and Avondale Road was received.
"Inside the scheme boundary the signatures, in addition to the previous consultation results, show that there is a strong majority against the permit parking scheme on Clarence Road.
"It is recommended that the scheme be implemented on Avondale Road and Dykes Hall Road and omit the proposals for Clarence Road."
So far, 57,000 has been spent on implementing a trial parking permit scheme around Hillsborough Place, Hillsborough Road and parts of Taplin Road.
It will cost Sheffield Council a further 170,000 to bring in the proposed scheme around Hillsborough Corner.
If agreed at the cabinet highways committee meeting on January 13, the scheme will come into force during the next financial year.
Once it has been fully operational for six months, the scheme will be reviewed to see if minor changes need to be made to the boundaries.
Originally, Sheffield Council planned to introduce permit parking in two areas of Hillsborough – around the football ground and around Hillsborough Corner – but plans to implement restrictions on the area around Sheffield Wednesday on match days were scrapped last year as they proved unpopular with householders.
Plans for roads around Hillsborough Corner progressed after 66 per cent of respondents indicated full or partial support.
Almost 60 per cent of residents and businesses, however, were opposed to the scheme covering streets around the football stadium, which would have operated four hours before and two hours after matches.
Sheffield Council has previously introduced permit parking schemes in Broomhall, Broomhill, Sharrow Vale, Crookesmoor and Highfield.