According to the club website, Liverpool plan to construct a 50 million pound ($62.35 million) combined training centre, redevelop the existing facilities at the academy and convert the main pitch into an indoor one.
The club added that a public consultation would be held on March 8 for local residents and businesses to discuss the proposed plans in more detail.
Legendary manager Bill Shankly transformed Melwood into a top class training facility in 1959 but current boss Jurgen Klopp has been a keen advocate of having a larger facility able to accommodate the first team and the academy.