The present invention relates to a stable liquid formulation of etanercept (recombinant p75 sTNFR:Fc fusion protein) and more particularly to a liquid formulation comprising one or more stabilizers selected from the group consisting of methionine lysine histidine and pharmaceutically acceptable salts thereof in an amount sufficient to reduce by product formation of etanercept during storage. The liquid formulation according to the present invention effectively reduces production of etanercept by products and to stably maintain its pharmaceutical efficacies for long term storage. Therefore the reconstitution procedure is not required before administration and the sterile formulation can be administered to patients to ensure patient safety. Thus it can be applied to the fields in need of etanercept treatment.