Well-wishers for the youngster have been gathered outside of Everton's Goodison Park ground in Walton Lane from the junction of Spellow Lane towards Queens Drive as the funeral procession passed between 11 and 11.30am.
A black funeral hearse carrying his tiny white coffin, adorned with a blue heart and toy soldiers can be seen driving through the streets of Liverpool.
The toddler lost his battle with a generative brain condition on April 28 after his case became the subject of a High Court battle over his life support.
A private funeral for toddler Alfie Evans will be held later.
Alfie died on April 28 at the age of 23 months.
Crowds began gathering hours before the procession was due to go past this morning and by the time it arrived there were hundreds of people by the side of the road.
Members of the public watch the funeral cortege of Alfie Evans go past Everton's Goodison Park ground in Liverpool.
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Alfie had a degenerative neurological condition that left him with nearly no brain function.
Tributes were left outside the stadium at the bottom of a statue of famous Evertonian Dixie Dean.
In February, a High Court judge ruled that doctors could stop providing life support for Alfie, against his parents' wishes, saying the child required "peace, quiet and privacy".
Tom and Kate Evan have been battling to have their son transferred to Italy for medical treatment.
The case attracted widespread attention including from the Pope, who tweeted his support for the family.
A separate vigil was held in Liverpool's Springfield Park last Wednesday to mark what would have been Alfie's second birthday.