Castro, who is visiting the city on the direct recommendation of the Brazilian Olympic Committee (BOC) and taking time out to meet young divers, said "The facilities in Sheffield are absolutely perfect -we have everything we need to dive here and more.
"Ponds Forge has the latest camera technology that we need to train.
"I hope to come back here again to train before the Olympics in 2012.
"I am happy to raise awareness of diving here in Sheffield, because like in Brazil it doesn't have the high profile that football does."
The diver has met with young people from Activity Sheffield's diving squad to inspire them.
Councillor Gail Smith, cabinet advisor for culture, sport and tourism at Sheffield City Council, said: "This really is a life changing experience for many of the youngsters who we see as the future of British diving.
"The children have got a glimpse of life as an Olympian,and what motivates Cesar.
"I'm so glad that these Sheffield youngsters have been given such a fantastic opportunity and can only thank the BOC for their continued support in the city.
"We have forged a great relationship in the run-up to 2012.
"It takes a lot of hard work and dedication to become one of the world's best and that is exactly what Cesar has shown."
Brazil Judo confirmed they will use Sheffield as their training camp for the London Games in September last year.
Gary Verity, chairman of Yorkshire Gold – the regional committee for London 2012 and chief executive of Welcome to Yorkshire - said: "Sheffield's recent announcement of their major sports events programme for 2011 highlights the city as a key UK sporting destination as the countdown to London 2012 gathers pace.
"I know Cesar will enjoy his time in Yorkshire, seeing all the county has to offer, enjoying the friendliness of the people and benefiting from the great sporting facilities we have to offer."
September 2010: Sheffield pull off Brazilian signing coup
August 2010: Sheffield chosen as US diving centre for London 2012 after Europe-wide search
August 2010: US announce pre-London 2012 training camp deals