The project, which is also being part funded by South West Trains, Wandsworth Borough Council includes of installation lifts and new walkways.
The entrance and ticket office will be demolished to make way for a new modern building.
Malcolm Page, station development manager, South West Trains, said: “We are pleased to be contributing towards this significant project with our partners to provide a much improved and brighter station for Earlsfield’s passengers.
“Passengers in Earlsfield rely on rail for 2.8m journeys every year, reflecting its importance to the community and local economy.”
The creation of the temporary ticket office on platforms one and two and a temporary footbridge has already started, with major construction work due to start in late Autumn.
The first phase of the works is the construction of the new ticket office building and installation of the lift to platform three.
This is due to be completed in the early part of 2012, at which point work will start on the lifts.
Earlsfield is one of the 148 stations in Britain to receive funding to provide better access to stations.