The 22-year-old grew up in north west London, starting his career at QPR.
A fire that engulfed the block of flats killed at least 17 people, a figure expected to increase.
Sterling told the BBC: "This is a deep and sad situation, one that's close to my heart and hard to swallow. I would like to help in the best way I can."
He added: "It is only a small step, but small steps lead to big changes if we all come together.
"My condolences to the affected families, also the individuals who lost their homes."
Queens Park Rangers' Loftus Road Stadium is a mile away from Grenfell Tower.
Manchester City and England winger Raheem Sterling is to make a substantial donation to those affected by the Grenfell Tower fire.