Seismic velocity plays an important role in imaging and identifying underground geology. Conventional seismic velocity inversion methods, like full waveform inversion, directly update the velocity model based on the misfit between the observed and synthetic data. However, seismic velocity inversion is a highly nonlinear process, and the inversion effect greatly relies on the initial inversion model. In this paper, we propose a novel network‐domain full waveform inversion method. Different from the existing network‐domain full waveform inversion methods, which use random or fixed numbers as network input, we reparameterize the low‐dimensional acoustic velocity model in a high‐dimensional inversion network parameter domain with seismic observed data as the network input. In this way, the physical information within the observed data can be directly encoded into the inversion parameters, leading to a better inversion effect than the current network‐domain full waveform inversion method. Moreover, comparison experiments on the Society of Exploration Geophysicists and the European Association of Geoscientists and Engineers Overthrust model and the Marmousi model show the advantages of the proposed method over conventional full waveform inversion from the aspects of inversion accuracy, robustness to noisy data, and more complex geological structures. These advantages may benefit from the fact that reparameterization within the inversion network domain can empower the inversion process with the regularization ability of denoising and mitigating the cycle‐skipping issue. In the end, the potential of the proposed method in terms of network initialization is further discussed.