The trials by Stanford University involved three men suffering from such defects. When their tissue samples were genetically engineered and then implanted into the testes of mice, cells were successfully generated.
The findings, published in the journal Cell Reports, indicate that Y chromosome infertility occurs relatively late in the maturing process of sperm cells.
Lead researcher Dr Reijo Pera, from the Institute for Stem Cell Biology and Regenerative Medicine, said: "Our results are the first to offer an experimental model to study sperm development.
"It might even be possible to transplant stem-cell-derived germ cells directly into the testes of men with problems producing sperm."
In 2012, US scientists from the University of Pittsburgh found that it was possible to generate sperm cell precursors from skin tissue from fertile men.
However, the trials are the first time such methods have succeeded on men with fertility problems.
Researchers suggested the findings could bring hope to men who suffer from genetic infertility problems and from those who become infertile after treatment for diseases such as cancer.
Dr Reijo said: "Our studies suggest that the use of stem cells can serve as a starting material for diagnosing germ cell defects and potentially generating germ cells."
- Daily Telegraph