Bulldozers have moved in to the old Alder Hey Children's Hospital site in West Derby as the next phase of development work begins.
It is part of plans to transform land surrounding the new hospital into a huge 9.4 hectare (23-acre) park.
The land swap agreement was made between Liverpool council and Alder Hey in 2012 to allow the new hospital to be built on land at Springfield Park.
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A large area of the old site is now behind temporary steel fencing, while excavators can be seen clearing the land. Among the buildings being demolished is the old boiler house which was part of the former hospital site.
The Alder Hey Children's NHS Foundation Trust's vision for the new park is to deliver a "living health campus" - an aspiration which it says is "driven by children and young people’s wishes".
In addition to the hospital, the health campus will comprise the Institute in the Park. This will be a research centre to develop new medicines and technology to significantly improve health outcomes for children and young people in the future.
The site will also be home to the Alder Centre - which will be the UK's only dedicated bereavement centre for child loss - and Sunflower House, a new 12-bed mental health unit.
A spokesperson for the Trust said: "Alder Hey built their new state of the art Alder Hey in the Park Children's Hospital in 2015, on Springfield Park, which is owned by Liverpool city council.
"As part of the land exchange agreement with Liverpool city council made in 2012, Alder Hey is returning 9.4 hectares of land back to council ownership by replacing the old Alder Hey hospital with enhanced park land. Phase one of this agreement is now complete.
"With phase one now complete work is currently underway to return phases two and three of this process with the aim that the full 9.4 hectares of park is scheduled to be handed over to Liverpool city council by 2023.
"The Park now includes several enhanced features including a new path network that provides a pedestrian link from Alder Road to East Prescot Road, a new car park and a new pedestrian entrance with build in timber steps and rock boulders."
