The three-block mixed-used scheme, which will sit next to the Grade II*-listed City Hall in the Barkers Pool area of the South Yorkshire city, was approved by the council yesterday.
The decision signals the end of the road for the 'out-of-character'1980s NUM building, commissioned by the union's controversial former leader Arthur Scargill.
Only briefly occupied, the headquarters has been empty for years. It was recently described by the Twentieth Century Society as 'late sub-Stirling'.
The new development, for Wilson Bowden Developments, will split the existing site in two, creating three office buildings, all of which will have shop units at ground-floor level.
DLA director John Orrell said: 'From the very beginning of the design process we were extremely aware of the importance of this scheme for Sheffield.
'The scheme aims to sympathetically address and respond to local architecture while creating a high-quality contemporary addition to this significant and historic area. A complementary palette of materials has been used to respect the local vernacular with extensive glazing at high level to maximize the views across the city and beyond.'
The project has received funding from both Yorkshire Forward and European Objective One and work is expected to start on site next year.