The project, in partnership with the city council, requires the demolition of several neighbouring streets and includes the provision of new housing.
Liverpool mayor Joe Anderson said: "Liverpool Football Club is an integral part of the Anfield area and will be an integral part, together with [housing association] Your Housing and others, in actually shaping the future of Anfield.
"This is an exciting opportunity for us, it really is. We're talking about a regeneration scheme that is going to develop a new future for that area. It's long overdue, but very much welcome. We're going to create a development board to oversee the whole project, which the club is just part of.”
The development board will include the mayor, football club chairman Tom Werner and Your Housing chair Kathy Cowell as well as resident representatives.
Mr Anderson added: "We will oversee the development of the area, which includes housing. A huge chunk of housing is going to be refurbished. We've made a commitment of probably, together with the RSLs, around £30m-£35m of new funding into the area by way of housing redevelopment.”