The Palace Museum, housed in the Forbidden City in Beijing, started work on another museum to display its exhibits on Sunday.
The new museum will be located in Cuijiayao, Haidian district, said a report of Beijing Morning Post.
Construction will take seven years and after completion admission will be free to the public.
The museum will display art collections from the Palace Museum, said Shan Jixiang, head of the Palace Museum.
It is expected to attract 3 million visitors each year, easing pressure on the Palace Museum.