A protest was held outside the town hall ahead of the meeting, chiefly by pro- Palestine supporters.
Inside, the full council meeting was delayed for an hour as talks between Labour and the Greens continued.
Once underway, Belbin apologised to councillors for the delay and went on to explain that the two parties would "work more constructively together going forward".
She went on to indicate that a joint statement would soon mean that the current arrangement with the Greens would not change.
The power deal between Labour and the Greens in Sheffield came about following May's local elections, in which no party was left in overall control.
Commenting on the announcement by Belbin, councillor Martin Smith, leader of the Liberal Democrat Group, said: "This is an extraordinary U-turn and a shameful abandonment of principle by Labour.
"Just days ago, Labour were telling us that trust with the Greens was completely broken and that they could no longer work together. Now they've decided to carry on as if nothing happened."
Source: BBC Politics · Mick Lunney
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