The focus of this investigation is to study the mechanics of the human knee using a new method that integrates multibody system and large deformation finite element algorithms. The major bones in the knee joint consisting of the femur, tibia, and fibula are modeled as rigid bodies. The ligaments structures are modeled using the large displacement finite element absolute nodal coordinate formulation (ANCF) with an implementation of a Neo-Hookean constitutive model that allows for large change in the configuration as experienced in knee flexion, extension, and rotation. The Neo-Hookean strain energy function used in this study takes into consideration the near incompressibility of the ligaments. The ANCF is used in the formulation of the algebraic equations that define the ligament/bone rigid connection. A unique feature of the ANCF model developed in this investigation is that it captures the deformation of the ligament cross section using structural finite elements such as beams. At the ligament/bone insertion site, the ANCF is used to define a fully constrained joint. This model will reflect the fact that the geometry, placement and attachment of the two collateral ligaments (the LCL and MCL), are significantly different from what has been used in most knee models developed in previous investigations. The approach described in this paper will provide a more realistic model of the knee and thus more applicable to future research studies on ligaments, muscles and soft tissues (LMST). Current finite element models are limited due to simplified assumptions for the spatial and time dependent material properties inherent in the anisotropic and anatomic constraints associated with joint stability, and the static conditions inherent in the analysis. The ANCF analysis is not limited to static conditions and results in a fully dynamic model that accounts for the distributed inertia and elasticity of the ligaments. The results obtained in this investigation show that the ANCF finite elements can be an effective tool for modeling very flexible structures like ligaments subjected to large flexion and extension. In the future, the more realistic ANCF models could assist in examining the mechanics of the knee to study knee injuries and possible prevention means, as well as an improved understanding of the role of each individual ligament in the diagnosis and assessment of disease states, aging and potential therapies.