Managing director Ian Ayre feels a multi-million redevelopment of Anfield will not restrict Liverpool’s spending power in the transfer market.
The Reds owners Fenway Sports Group formally confirmed their intention to remain at their current home and not pursue a new build project in Stanley Park.
"As we've said, the right solution is the right economic solution," Ayre told the club's website.
"More so from it detracting from our spending in the transfer market, the whole point of doing this is to actually increase our revenues.
"This whole initiative is designed to generate additional revenues so the ultimate solution has to be one that increases the overall output through the process rather than decreasing it.
"We need a much-increased capacity and it has to be one that is right for the club going forward," Ayre told the Liverpool Echo.
"We could have achieved that in a new stadium but the cost of doing so would have been at least double what we expect to spend by staying put.
"We would have been making very big payments - servicing the loans involved in building a brand new stadium - for very many years into the future.
"That would have hampered our ability to spend money where we, and the supporters, want to see it spent: in buying and developing top players to allow us to continue to compete successfully at the very highest levels in Britain and Europe.
"This option gives us much more chance of generating the revenues we need in a sensible and practical way - and of course of accommodating many more fans who want to come and watch us play."