Club bosses were granted planning permission to build the 60,000-seat stadium in May before a rift emerged between American-owner Tom Hicks and George Gillett.
The pair have since announced they are "healing their rift" and today revealed the commencement of works on site.
Construction of the stadium, which could be expanded to 73,000 if further permission is granted, is expected to be finished in time for the 2012/13 season.
In statements on the club's website Mr Gillett said: "This is a significant milestone for the club and I am delighted that the design received full planning consent and that we are now on site."
Mr Hicks added: "We recognise the importance of a new LFC Stadium as part of the wider regeneration of the local area."
The stadium is being built on Liverpool's Stanley Park, across the road from the current Anfield stadium.