Tom Hunt has replaced Terry Fox, who resigned ahead of the local election results when it also emerged the city’s Labour group had been put under supervision by the national party.
Speaking to BBC Radio Sheffield he said he was “under no illusions of the scale of the task” to rebuild public trust.
Sheffield City Council is set to elect a new leader on Wednesday.
Mr Hunt, who has only been a councillor since 2022, was elected at a meeting on Monday, with Ben Miskell and Fran Belbin elected as deputy leaders of the group.
“I’m under no illusions of the scale of the task at hand, we’ve just come out of the back of two disappointing sets of election results for us in the city and we have aspirations to lead the city,” he said.
“We want to be doing better and the results we’ve had weren’t good enough.
“I’ve been elected as a fresh face, part of a new generation of leadership in the Labour group.”