The 26-year-old, who hails from the Steel City, claimed gold in the women's heptathlon at the London Games.
"It is an appropriate and fitting tribute to rename our Bramall Lane double tier stand after one of the finest athletes this country has ever produced," said Kevin McCabe, owner of the League One side.
"Jessica and her family are Unitedites and after discussions with them we all agreed that renaming the Bramall Lane stand after her would provide a permanent reminder that will hopefully act as an inspiration to other youngsters to come forward and achieve their dreams through sport."
Ennis added: "[It is] wonderful and totally unexpected to have further recognition from within Sheffield and from the football club."
The Jessica Ennis Stand will be officially opened when the Blades host AFC Bournemouth at Bramall Lane tomorrow.