An additional 7,000 seats are set to be incorporated into the Anfield Road Stand, which is expected to be completed in time for the 2023-24 campaign.
Speaking as he placed the first spade in the ground, Klopp said: “Everything is better with fans. I can’t imagine how 61,000 supporters will feel, we love the idea.
“With the great history of this club, it’s incredible that we are building the future too.”
The building work, which involves a re-route of Anfield Road itself, will take place throughout the season while matches continue to be played.
The lower tier of the Anfield Road Stand will be retained and refurbished, with a new upper tier built above in the expansion of capacity at the ground.
The expanded structure, which will be similar in design to the Main Stand and will include improved concourses and sports bar lounge hospitality facilities, is expected to support around 400 matchday roles in addition to the 2,200 which currently exist.
It will also feature additional pedestrian routes into Stanley Park and include “historical design references”.
Buckingham Group Contracting Limited has been appointed principal contractor. They will work closely with the Red Neighbours initiative and also employment groups in the area having entered into a commitment to offer work experience, apprenticeships, graduate placements and jobs to local people.
Liverpool managing director Andy Hughes told the club’s website: “Today marks the beginning of an important new chapter in our history, and one which will see us being able to bring more of our supporters into Anfield.
“I am delighted we can celebrate this significant milestone together with the many people who have contributed to this process.
“I look forward to celebrating further success with 61,000 fans when the stand is finished.”