The Football Club has been told to close the lower tier of the Gordon Lamb Stand (away end), including parts of the South Stand which means that 4,400 tickets can not be sold.
However United has said that they will fight the decision so that the fans of each club can attend the game without having to close the selected areas.
Blades Football Executive Terry Robinson told sufc.co.uk: "There is a built in appeal procedure which the club have taken advantage of and the council has allowed the case to be heard within a five day period, rather than the normal 21."
"The club is currently collecting information to put forward a case to try and have the decision rescinded - we are in constant contact with the FA and Leeds United to try and solve our mutual problem."
"The restriction will mean that Sheffield United is unable to supply the 15 per cent minimum ticket allocation that Leeds are entitled to under FA Cup rules."
Mr. Robinson added: "We are trying to put together proposals that will satisfy all parties, including both clubs, the police, the council and the Football Association."
"History this season, especially with regard to flares, makes stewarding and policing at Bramall Lane very difficult."
"The club will do everything in its power to work in conjunction with all statutory authorities to ensure any incidents are minimized whilst bearing in mind that public safety is of paramount importance."