The site, which sits between Morley and Cottingley on the Transpennine route, sits adjacent to the White Rose Office Park, and close to the White Rose Shopping Centre.
Regional transport chiefs say the new station will make it easier to access the area, and would "connect more people with job, training, education and leisure opportunities".
The plans will effectively see Cottingley Rail Station, currently in a residential area of south Leeds, move half a mile down the line to a site at the office park.
Closure plans for Cottingley Station were announced back in October 2021, with confirmation the site is expected to close at some point between late 2022 and Spring 2023.
Tracy Brabin, Mayor of West Yorkshire, hailed the work, adding: “Growing our economy is a key priority, but we are very clear that growth need to benefit everyone in our region.
“To achieve this, we need a reliable and efficient transport system, which is why I am pleased to see work start on our new, fully accessible rail station at White Rose.
“In my manifesto, I committed to improving public transport, connecting more people with opportunities and helping tackle the climate emergency on our way to becoming a net zero carbon economy by 2038. The White Rose Rail Station will help us do all of these things.”
Leeds City Council executive board member for infrastructure and climate Coun Helen Hayden (Lab) added: “It is fantastic news that we’re starting to build the new White Rose Railway Station in Leeds. It will enable better connections, making it easier for people to access jobs, education, training and leisure while supporting travel in the local area.
"It will also underline the council’s commitment to tackling the climate emergency and delivering the Connecting Leeds transport ambition of being a city where you don’t need to own a car.”
The work is being led by the West Yorkshire Combined Authority and developer Munroe K. It will receive money from the Leeds City Region Transforming Cities Fund, the Leeds Public Transport Investment Programme and £5 million from the Department for Transport’s New Stations Fund, as well as contributions from Munroe K.
Construction work is expected to continue into early 2023.