Liverpool chief executive Ian Ayre has told Sky Sports he believes the renovation and expansion of Anfield will allow the club to compete more effectively.
Work is under way on the transformation of Liverpool's home into a stadium that will be capable of holding almost 60,000 fans by the start of the 2016-17 season.
The club had previously been linked with a move away from Anfield but eventually opted to stay and expand the ground, which has been their home since 1892.
"The stadium is vital to the health of the club -- and we want to compete at the highest level," Ayre said.
#INSERT type:image caption:A new roof truss for the main stand is hoisted into place as work continues. END#
"If you look at revenue at clubs, matchday revenues are important. If you look at Arsenal, after building the Emirates they generate around 40 percent of revenue on matchday and we generate 20 percent.
"So this new stadium will get us back to that sort of level, because we need to be on an equal level with our competitors."
Ayre said the redevelopment scheme "keeps us at our spiritual home and delivers the sort of capacity which the fans and club deserve."
He explained that it would also help the regeneration of the surrounding area and said: "Staying here was so important, but also finding the right economic solution for the long term interest of the club -- and this does that.
"It gets us towards the capacity we want, and at a better cost than building a new stadium."