Liverpool say they will begin work on Monday to increase Anfield's capacity from about 45,500 to 59,000.
The five-time European champions' £100m project can go ahead after they completed the purchase of the final house which will need to be cleared in order to make way for the expansion.
The first phase of the work will begin on the Main Stand, which will feature a new third tier, adding 8,300 seats.
The Anfield Road Stand will then be expanded to add a further 4,800 seats.
The work is expected to be completed in time for the 2016-17 season, and will significantly enhance the club's revenues.
The project will also include additional conference and banqueting facilities, a new club shop and more car parking.
The expansion is part of a wider £260m regeneration of the Anfield area of the city.
According to the planning application approved by Liverpool City Council, the redevelopment will allow the club to host international fixtures and European finals.
It said there are parts of the stadium that currently "fall below current Uefa and Premier League standards, which restrict the club's ability" to host major games.
Uefa insists upon at least a 50,000-capacity stadium, corporate accommodation and a minimum standard for players and match officials' changing rooms.
A memorial to the 96 Liverpool fans who died in the 1989 Hillsborough disaster will be moved to form part of the Hillsborough Memorial Garden.