Soak the gelatin sheets in a bowl of cold water.
Place sugar and water in a saucepan and bring to a boil.
Once the water begins to boil, remove from heat.
Wring water from the gelatin sheets and add them to the hot water. Stir the gelatin into the water and let it cool slightly at room temperature.
Once the water has cooled slightly, add the champagne to the saucepan and gently stir everything together.
Pour the champagne mixture into a pouring jug for easier handling.
Pour the warm champagne jelly into a dish and refrigerate for at least two hours, until the jelly has set, ideally overnight.
Cut the jelly into smaller pieces and use as decoration in drinks, on top of cakes, or as a jelly layer in the middle of a cake.
If using the jelly as a beautiful top layer with a glossy finish, let it cool for about 20 minutes on the kitchen counter before pouring it on top of the cake with a cake ring around it.