South Yorkshire Mayor Dan Jarvis says he has clinched a devolution deal to release £30 million a year for the region.
It follows months of negotiations between the four councils covering Sheffield, Rotherham, Doncaster and Barnsley.
He tweeted the news today.
Barnsley MP Dan Jarvis became the first directly elected mayor of the Sheffield City Region 11 months ago.
The mayoral role gives the region devolved powers over services such as public transport and to promote the area for investment and to create jobs. It would also provide around £30m a year in extra funding.
But there was resistance from Barnsley and Doncaster councils who were wanting devolution for the whole of the Yorkshire region with a countywide mayor.
But now Dan Jarvis says he has reached an agreement with all the councils on how the Sheffield City Region will operate and he now hopes the government will agree to release the funding.
Dan Jarvis was elected for a four-year term. The next election will take place in 2022.
The Mayor acts as an ambassador for the Sheffield City Region, promoting it as a place to live, work, visit and invest in.
The Mayor will be a member, and chair, of the Sheffield City Region Combined Authority.
The Mayor will have certain public transport powers relating to how buses may operate in the future.
Further powers and resources may be devolved to the Mayor and the Combined Authority now agreement has been reached.